The short-term technical indicators indicate further upward move
The EURUSD exchange rate surged on Monday due to the weakness of the US dollar. This currency pair broke through the downward trendline and climbed to 1.0676, the highest level in a month. The outlook for the euro remains favorable before the Asian trading session, although some consolidation may occur after the 100-pip increase.
The sharp decline of the US dollar propelled the EUR/USD pair on Monday. The yield on US 10-year Treasury bonds initially rose above 5.00% but quickly reversed, dropping sharply to 4.84%. This significant decline pushed the US dollar index down to 105.51, the lowest level of the day since September 22. Stock prices on Wall Street showed mixed movements as the lower yields somewhat improved market sentiment.
Volatility continues to dominate the bond market ahead of key issuance events. On Tuesday, PMI data for the Eurozone and the United States are expected to be released. There is a slight improvement in Eurozone sentiment and a slight decrease in the US. The European Central Bank (ECB) will hold its monetary policy meeting on Thursday, along with important US economic indicators such as GDP and the preferred inflation measure of the Federal Reserve.
The sharp decline of the US dollar propelled the EUR/USD pair on Monday. The yield on US 10-year Treasury bonds initially rose above 5.00% but quickly reversed, dropping sharply to 4.84%. This significant decline pushed the US dollar index down to 105.51, the lowest level of the day since September 22. Stock prices on Wall Street showed mixed movements as the lower yields somewhat improved market sentiment.
Volatility continues to dominate the bond market ahead of key issuance events. On Tuesday, PMI data for the Eurozone and the United States are expected to be released. There is a slight improvement in Eurozone sentiment and a slight decrease in the US. The European Central Bank (ECB) will hold its monetary policy meeting on Thursday, along with important US economic indicators such as GDP and the preferred inflation measure of the Federal Reserve.
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Comment:
Trade closed: stop reached
