EURUSD recovered pretty much yesterday due to the US bond yield decrease.
On Tuesday morning, the major currency pair reached stability after growing earlier. The current quote for the instrument is 1.1920.
The American Dollar’s recent behavior is a clear reflection of the changes in the US bond yield: when bonds are rising, the greenback is rallying as well. However, yesterday the indicator was falling, although still being close to this year’s high. This decline was a correctional one and the key factor that supports the American currency remained the same – investors are very positive in their expectations of a quick recovery of the American economy backed by, among other things, additional stimulus measures.
The US Federal Reserve System Chairman Jerome Powell spoke yesterday and said that the regulator wasn’t competing with banks given the two-level system and didn’t use the national currency for destabilizing the financial situation. At the same time, the Fed is carrying out a lot of experiments to understand what is happening in the country’s economy at the moment. Powell also mentioned the digital currency and said that in order to move forwards in this issue, the regulator would require support from Congress and public opinion.
The statistics published earlier showed that the Existing Home Sales dropped to 6.22M in February after being 6.66M in January and against the expected reading of 6.55M. The key reason for this decline was the weather – would-be buyers tend to reschedule their visits to seу over real estate during cold and snowy winters.
Today’s economic calendar is as busy as it was the day before: a lot of monetary politicians, including Powell himself, are going to speak. As for the statistics, market players should pay attention to the New Home Sales in the USA in February, which is also expected to drop.
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.