- EUR/USD weighed by the rally in Treasury yields, DXY.
- Reflation trades play out amid stimulus, vaccine optimism.
- All eyes on US Retail Sales and FOMC minutes.
EUR/USD remains under pressure below 1.2100 ahead of the European open, as the US dollar clings to the recent gains amid a rally in the US Treasury yields.
At the time of writing, the main currency pair trades at 1.2092, down 0.0.10% on a daily basis. The spot witnessed good two-way businesses, initially climbing to three-week tops of 1.2170 before tumbling to the lowest levels in two days just under the 1.2100 level.
The benchmark 10-year US Treasury yields to yearly highs on rising inflation expectations, courtesy of the US fiscal stimulus and successful global covid vaccination campaigns.
The US dollar rebounded from multi-year lows, tracking the rally in the US rates, which further added to the weight on EUR/USD. Meanwhile, the euro traders failed to benefit from the upbeat Eurozone Q4 GDP data and German ZEW Economic Sentiment Index.
Markets now look forward to the key US Retail Sales data and the FOMC minutes for fresh trading impetus. The Fed is expected to maintain its pledge to keep the monetary policy accommodative for a prolonged period, as the post-pandemic economic recovery picks up steam.
EUR/USD technical levels
Share
