- EUR / USD is still on track to end the day in positive territory.
- The US dollar index fell below 91.80 during the American session.
- The yield on 10-year US Treasuries is shedding nearly 2% on Monday.
After starting the day with a bearish gap, the pair EUR/USD reversed its direction and climbed steadily throughout the day. With the dollar under renewed downward pressure during US trading hours, the pair rose to a new daily high of 1.1947. At time of writing, the EUR / USD was up 0.33% on the day at 1.1942.
USD struggles to find demand
US Treasury yields continue to drive the USD’s performance against its rivals amid a lockdown in important fundamental drivers. Benchmark 10-year Treasury yields, which posted gains for the seventh time in a row last week, are currently down 1.75% to 1,686%. Consequently, the US Dollar Index (DXY) is losing 0.2% to 91.73.
Hours earlier, US data revealed that the Chicago Fed’s national activity index fell to -1.09 in February, disappointing the market’s expectation of 0.21.
On the other hand, Christine Lagarde, president of the European Central Bank (ECB), said on Monday that the short-term economic outlook in the euro zone is subject to uncertainty. “We are ready to adjust all of our instruments, as appropriate, to ensure that inflation moves towards our target in a sustained manner, in line with our commitment to symmetry,” Lagarde reiterated in an ECB blog post.
There will be no high-level data releases on the European economic record on Tuesday. Later the same day, FOMC Chairman Jerome Powell will testify before Congress.
Technical levels
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