Euro groped support around 1.1700
On Tuesday, March 30, the euro fell 0.42% to 1.1714 against the U.S. dollar. The euro fell due to a jump in US government bond yields to 1.77% a year ago. Expectations of a rapid recovery in the US economy, thanks to new fiscal stimulus and successful vaccinations, have helped to increase profitability. Today, Joe Biden plans to present an infrastructure spending plan.
The pressure on the euro has increased even as the spread between German and US bond yields increases. Investors expect the U.S. economy to recover faster than Europe. The blockades in France and Germany have tinged down the short-term prospects of the European economy. Demand for the dollar also rose due to concerns about the consequences of default by hedge fund Archegos Capital.
Scheduled statistics (GMT) 3):
At 10:55 a.m., Germany will publish data on the change in the unemployment rate and the number of unemployed in March.At 12:00 a.m., the euro area will report on consumer prices for March.At 3:15 p.m.m. the U.S. will report a change in the number of employees from ADP in March.At 3:30 p.m. .m. Canada will announce a change in GDP for January and present the producer price index for February.At 16:00 in Switzerland, a quarterly inflation report from the NBS will be published.At 4:45 p..m.m., the United States will publish the Chicago Purchasing Managers’ Index for March, and at 5.m. unfinished home sales for February.At 17:30, the Ministry of Energy will publish a report with data on changes in oil reserves.
Current situation
During the Asian session, the euro fell to 1.1704. At the time of writing, the euro is worth EUR 1.1732. The main currencies came out on the plus side, with the exception of the yen and the franc. The yield on the 10-year bond fell to 1.728% a year ago. The drop stopped around 202 degrees (1.1702, Gunn level).
After the release of excellent statistics in China, “Australian” and “New Zealand” received support. China’s services sector activity index for March was 56.3 vs. 51.4 previously and forecast 51.9. China’s industrial activity rate for March was 51.9 vs. 50.6 previously (forecast at 51.3).
After a prolonged weakening of the euro and Chinese statistics, the preconditions for upward revision emerged to 1.1748. Traders have increased their appetite for risk. The euro returned to 1.1727 and the pound rose to 1.3753. Biden’s team has prepared a $3 trillion package. He will talk about it today at 23:20 Moscow time.
