- A pullback in the dollar further fueled the EUR / USD rebound.
- Dollar continues with mixed results, negative against G10 currencies, up against emerging markets.
The EUR / USD extended the bounce and set new highs for the day at 1.2144, matching Friday’s highs. In the European session the pair had managed to trade below 1.2100, before starting a rebound.
The rise from the floor met resistance around 1.2140 / 50, which remains a key barrier. If the euro manages to assert itself above it, it would be positioned to extend the bullish run. While of not being able to again, corrections would be expected. Support looms at 1.2110 and 1.2080.
Looking at Wall Street and bonds
Traders are closely monitoring what is happening with the bond market and with Wall Street. Treasury bond yields have moved away from the highs, although the 10-year rate remains above 1.35%. In turn, the futures of the main Wall Street indices are trading negative.
Despite the rise in yields, and the fall in stocks, the dollar is weak against the G10, which can be seen in a drop in the dollar index to 90.20. Against emerging currencies, the dollar shows the majority of rises, due to risk aversion.
Technical levels
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