EURUSD received upward support from the weakening US Dollar.
EURUSD is hovering around 1.0730 during the Asian session on Thursday. Attempting to extend its gains for the second day in a row. Furthermore The EURUSD pair’s upward impetus could be linked to the US Dollar’s (USD) weakness. The US Dollar Index (DXY) is trading near 104.70. Following the previous day’s losses on lower US Treasury yields.
The US Treasury yields placed downward pressure on the greenback.
The two-year and ten-year US Treasury yields are lower. At 4.56% and 4.23%, respectively. This indicates a significant shift in market attitude. Expectations that the Federal Reserve (Fed) would not raise interest rates at its forthcoming March meeting have risen to about 90%.
Furthermore According to the FedWatch Tool, investors are currently pricing in a 37%. Chance of a rate decrease in May, With the possibility of a 25 basis point (bps) cut jumping to around 53% in May.
On the other hand, the Euro (EUR) struggled on Wednesday. With the announcement of seasonally adjusted Eurozone Gross Domestic Product (GDP) data. Which met market expectations for the fourth quarter.
Moreover The preliminary Eurozone Gross Domestic Product (GDP) stayed unchanged at 0.1% year on year. In accordance with market expectations. Quarter after quarter. The figure stayed steady at 0.0%, matching the prior quarter’s reading.
Moreover ECB Vice President Luis de Guindos emphasized continued wage pressures at excessive levels. Implying that insufficient data is available to indicate a reduction in these pressures.
EURUSD Traders are looking for fresh clues from ECB President Christine Lagarde’s speech.
On the Other hand Market investors are likely to pay attention to Christine Lagarde, President of the European Central Bank (ECB). Who is set to speak Thursday. Retail sales statistics and initial jobless claims will be widely watched on the US economic calendar.
