EURUSD plunged. Overview for 01.03.2021

Early in spring, EURUSD is looking rather weak amid active demand for risks on the market. 

The major currency pair is rather unimpressive and weak on Monday. The current quote for the instrument is 1.2050.

The key trigger of the USD strengthening was the US 10-year bond yield, which reached this year’s high. It is happening due to aggressive anti-coronavirus campaigns all over the world, which made investors believe that American inflation would boost and the US Federal Reserve might get rid of its stimulus programs much earlier than it was thought before. 

It’s quite clear that all this is just predictions and expectations but financial markets like it. 

Today’s data from the Euro Area is quite nice so far, thus decreasing pressure on the Euro a little bit. For example, the final report on the Manufacturing PMI showed 57.9 points against the previous estimate of 57.7 points. The same indicator for Germany was 60.7 points against the previous reading of 60.6 points. 

Later in the evening, the ECB President Lagarde is scheduled to speak and market players should definitely listen to her estimations of the current economic state of the Euro Area. 

The USA is planning to report on the Manufacturing PMI from both ISM and Markit for February, as well as the Construction Spending for January and the Manufacturing Prices for February.

The key American statistics are planned for the first Friday of the month, as usual. It will be a bunch of reports on the labor market for February. 

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Source: RoboForex


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