Sharp drop in US Treasury bond yield takes its toll on USD. US Dollar Index drops to 96.20 area after opening with a bullish gap. German IFO Business Climate Index improves modestly in February. The EUR/USD started the new week under pressure with a bearish gap after the weekend reports showed a surge in confirmed coronavirus cases globally, especially in Italy and South Korea. According to Italian news agency ANSA, the number of confirmed cases in Italy currently stands at 229 with 7 fatalities. After sliding toward the 1.0800 handle during the European session, however, the broad-based USD weakness in the second half of the day helped the pair close the opening gap and turn positive on the day. As of writing, the EUR/USD pair was up 0.15% on the day at 1.0860. DXY turns south in American session Although the USD was able to capitalize on risk aversion in the past few weeks, a sharp drop witnessed in the US Treasury bond yields seem to have finally triggered a heavy selloff. At the moment, the 10-year US Treasury bond yield is down 7.7% on the day at 1.359%. The US Dollar Index (DXY), which advanced to a daily high of 99.64 earlier, was last erasing 0.18% on the day at 99.15. In the meantime, Monday’s data showed that the headline German IFO Business Climate Index improved slightly to 96.1 from 96 in January 95.9 to beat the analysts’ estimate of 95.3. Furthermore, the Expectations Index rose to 93.4 from 92.9 and the Current Assessment Index arrived at 98.9 to surpass the market expectation of 98.6. On Tuesday, Gross Domestic Product (GDP) data for the fourth quarter from Germany will be looked upon for fresh catalysts. Investors will continue to keep a close eye on coronavirus headlines as well. Technical levels to watch for FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next Ripple Price Analysis: XRP/USD price consolidates under 0.30 FX Street 2 years Sharp drop in US Treasury bond yield takes its toll on USD. US Dollar Index drops to 96.20 area after opening with a bullish gap. German IFO Business Climate Index improves modestly in February. The EUR/USD started the new week under pressure with a bearish gap after the weekend reports showed a surge in confirmed coronavirus cases globally, especially in Italy and South Korea. According to Italian news agency ANSA, the number of confirmed cases in Italy currently stands at 229 with 7 fatalities. After sliding toward the 1.0800 handle during the European session, however, the broad-based USD weakness in the… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.