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EUR/USD Heavy as UST Yields Claw Higher

EUR
MNI (London)
  • EUR/USD eased to a low of $1.1761around the 1600BST fix with recovery effort capped at $1.1784 before closing the day at $1.1765.
  • As mentioned Monday, yesterday was month-end value which often prompts US corporate USD demand during the NY session. This along with a creep higher in UST yields saw USD trade firm into the close.
  • Slow session for EUR/USD in Asia, rate edged to a high of $1.1774 before it drifted off to retest Monday's low of $1.1761. Rate holds heavy into Europe.
  • UST yields have edged higher, UST 10-yr yield currently 1.7455% which is seen keeping the USD buoyed.
  • Germany state's CPI releases commence with Saxony at 0700GMT, pan-Germany 1200GMT. Spain CPI 0700GMT also of note. EZ Econ/Consumer Confidence data 0900GMT.
  • US House Prices 1300GMT, US Consumer Confidence 1400GMT. Fed Quarles speaks at 1300GMT. ECB Centeno speaks at 1500GMT.
  • Month/Quarter-end approaches Wednesday, attention on fix flows.US Pres. Biden speech Wednesday moving into view, expected to outline next fiscal stimulus with likely tax hike plans to finance. US NFP Friday also moving into view (Good Friday).
  • Support $1.1761, break exposes $1.1752(see MNI Techs below), then $1.1730 ahead of the Nov05 low at $1.1711 and $1.1695(38.2% 1.0636-1.2349). Resistance $1.1774, stronger into $1.1795/1.1805. Break here to expose $1.1828(Mar25 high) ahead of $1.1850/55 and $1.1874(200-dma).
  • MNI Techs: EURUSD is trading at its recent lows and remains bearish following last week's sell pressure. The pair has cleared the 1.1800 handle and attention is on 1.1752 next, a Fibonacci projection. Last week's move lower also resulted in a break of the 200-day MA and confirmed a resumption of this year's downtrend. On the upside, firm resistance is at 1.1947, the Mar 22 high. Initial resistance though is at 1.1805/53.
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
BulletMarketsForeign Exchange Bullets
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
BulletMarketsForeign Exchange Bullets

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