- The euro is still unable to affirm recoveries.
- The dollar is firm in the market before rising yields.
- EUR/USD continues to weaken below 1.0900.
EUR/USD fell hours ago to 1.0846, the lowest level in a month, and then bounced back. The rise reached 1.0891, where it lost momentum and fell back again. The pair is trading at 1.0865/70, with a negative bias.
Euro without being able to recover, the firm dollar
The minutes of the last meeting of the Governing Board of the European Central Bank (ECB) published on Thursday, were branded “hawkish” according to several analysts. These days, several banks have moved their forecasts for a September rate hike from December. But this has failed to lift the euro against the dollar. The next meeting of the ECB is on April 14.
As far as data is concerned, a rise in industrial production in Spain of 0.9% in February and an advance of 0.78% in retail sales in Italy were known on Friday. The data had no impact on the market.
On the dollar side, the key factor for these sessions continues to be the bond market. The constant fall in bonds continues to push the greenback. The yield curve does not look inverted and the 10 and 30 year rates are at 2.68% and 2.69%, in the area of maximums in years. A correction in bonds could favor a rebound in EUR/USD.
The economic calendar for the end of the week moves lightly. The report on wholesale inventories stands out and several ECB officials are planning public presentations.
Technical levels
Source: Fx Street
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