Forex Today – Asian Session: ECB Takes a Subtle Hit to Rising Yields

What you need to know on Friday, March 12:

The dollar fell as US Treasury yields rose. The yield on the 10-year bond fell to 1.47% and subsequently recovered, although the dollar remained under pressure.

Wall Street soared, with the DJIA hitting new all-time highs and the S&P flirting with all-time highs. The Nasdaq added more than 2%.

EUR / USD is approaching 1.2000 after the ECB’s monetary policy decision, while GBP / USD is trading around 1.3980 heading into the Asian open. Commodity-linked currencies rose along with equities, while USD / JPY remained within familiar levels.

Gold rose to $ 1,739.82 on the day, but trimmed earnings before the close, ending the day around $ 1,723. Crude prices recovered some ground and the WTI ended the day at $ 66.00 a barrel.

The European Central Bank held a monetary policy meeting and, as widely anticipated, kept rates unchanged, along with the size of the PEPP. Policymakers announced that bond purchases during the next quarter will be made at a significantly higher rate than during the first months of this year. German bond yields fell under this headline, but EUR / USD remained in bullish territory. At her press conference, President Christine Lagarde said the ECB is watching the exchange rate, adding that the central bank is ready to recalibrate its tools.

United States President Joe Biden signed the $ 1.9 trillion coronavirus relief bill.

Some EU countries discontinued vaccines with the AstraZeneca injection after some serious cases of blood catastrophes were reported. Meanwhile, the distribution of covid vaccines in the area remains slow and further delays are expected, all of which will undermine the economic return of the region. Although there is no proven connection between vaccine inoculation and adverse reactions, several countries have banned the use of at least one batch of the COVID-19 injection.