DOLLAR PRESSURE DECREASES ON EURUSD!
After the 10 and 30-year bond auctions organized by the US Treasury Department, interest rates declined to 1.48 percent. The pullback in US 10-year bond yields somewhat alleviated the sudden appreciation on the dollar side. Thus, pricing above 1.1975 level came to the agenda in EURUSD parity, which takes a breath of fresh air. The stimulus package in the USA was signed today by US President Joe Biden after it was accepted in the House of Representatives. We see that the risk appetite in the markets increased after the incentive package came to an end. It can be said that the weekly unemployment benefit applications in the USA increased below the expectations with 712K people, which increased the positive complacency regarding the US economy. Thus, with the increasing risk appetite in the markets, it is seen that the US indices completed the day in the positive zone.
On the developments in the Euro Area, during the ECB meeting held yesterday, interest rates were not changed in line with the expectations, while the bond purchase program was kept constant. ECB President Lagarde stated that while the inflation outlook remained largely unchanged, interest rates could lead to a premature tightening. Moreover, Lagarde stated that the incoming data indicate that the economic weakness will continue in the first quarter. Thus, pricing below 1.1950 level occurred in the EURUSD parity, which accelerated the upward momentum before the ECB meeting.
In the light of all this information, the pair, which continues to move above 1.1958 level, is pushing down this level this morning. Especially if this level is crossed, dips can target 1.19 and 1.1850 support levels. However, in the returns from this level, we can see that the increases continue to the 1.2052 threshold with 1.20 resistance.