- Rise in Treasury yields propels the dollar.
- EUR / USD resumes bearish slope and aims to test 1.2030.
EUR / USD extended the pullback after momentarily trading above 1.2100 in the European session and it fell to 1.2042 marking a new daily low. In this way the euro is erasing Tuesday’s gains and is under pressure again. The movement is given before a general advance of the dollar.
Euro gains moment before yields rise, ignores data
The dollar gained momentum and reached highs on almost all fronts recently after the yield of the 10-year rate of the Treasury bond, will exceed the 1.45% zone and will reach 1.47%, reaching the highest level since February 26.
Prior to this movement, the ADP employment report was released, which showed an increase in private sector jobs of 117,000, below the 177,000 of the market consensus. The data was ignored and overshadowed by what was happening in the bond market and also with Wall Street futures. Futures on the major stock indices cut earnings significantly.
More data from the US is on Wednesday’s agenda. First there will be the Markit PMI for the services sector (final) and then the ISM non-manufacturing. Later in the afternoon of the American session, the Federal Reserve will publish the Beige Book on the state of the economy. Additionally, Federal Reserve officials Harker, Bostick and Evans will speak.
EUR / USD below 1.2050, will target 1.2030
The EUR / USD is trading around 1.2050. In case of consolidating below, the next support that can be seen in the important zone of 1.2030 would be exposed. Breaking this would partly clear the way for a return to 1.2000 and to test Tuesday’s lows of 1.1990.
To the upside, a recovery above 1.2080 would ease downward pressures, while a consolidation above 1.2110 would signal a bullish extension.
Technical levels
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
