EURUSD: Note to Lagarde press conference

On Wednesday, March 10, trading on the euro ended higher. The euro rose 0.24%, to 1.1929. The U.S. dollar fell after the release of the U.S. inflation report. These figures coincided with the expectations of some experts, which eased concerns about an increased risk of inflation. The yield on 10-year U.S. bonds fell 0.56%, to 1.519% year-on-year. 

Scheduled statistics (GMT):

At 15:45, the ECB’s interest rate decision will be published in the euro area and an ECB press conference will be held at 16:30.At 4:30 p.m p.m., the U.S. will announce a change in the number of initial applications for unemployment benefits.At 6 p.m., the U.S. will report a change in the vacancy rate and labor turnover in January.

Current situation

In asian trade, major currencies are showing mixed dynamics against the US dollar. “Australian” and “New Zealander” on the plus side, franc and yen in red. The current situation indicates a persistent appetite for risk, but their strengthening is hampered by the rise in 10-year bond yields (US10Y). It returned to 1.53%. After yesterday’s inflation statistics, the US10Y is expected to fall to 1.48%.

Euro exchange rate rose to 1.1935. At the time of writing, the euro is worth EUR 1.1922. The main topic of the meeting of market participants is the ECB meeting and the press conference of Christine Lagarde. She must be commented on in the last sale. and whether the ECB will change the parameters of its PEPP in order to reduce profitability. The U.S. House of Representatives voted in favour of the $1.9 trillion crown package. President Joe Biden is ready to sign the bill as early as Friday. If the euro does not fall significantly after Christine Lagarde’s speech, we should expect growth to continue to rise to 1.1975. Support is at 1.1900.