DOLLAR PRESSURE REDUCED SLIGHTLY IN EURUSD

After the ADP Private Sector Employment data remained below the expectations with 517 thousand people, there was a depreciation on the dollar index side. However, this data actually pointed to the highest level of the 6-month period, signaling that the employment market is recovering. On the other hand, it is seen that the decrease in new house sales also brought about the downward acceleration in the dollar. We have seen that the ISM manufacturing PMI figure in the USA has increased well above the expectations. This retreat in the dollar accelerated the upward attacks on the EURUSD parity to the level of 1.18. In addition, the US 10-year bond yields still pointing to high levels of 1.67 percent may cause this thaw in the dollar to remain for a short time. US President Joe Biden announced a new $ 2.25 trillion infrastructure incentive package. While this development caused a slight appreciation on the indexes side, the March non-farm employment report, which will be announced by the US today, is of critical importance for the markets.

On the developments in the Euro Zone, it was decided that the Covid-19 restrictions will be extended in France and Italy, especially in Germany. While this decision pressured the Euro side a little, on the other hand, monthly inflation in the Euro Area increased by 0.9 percent compared to the previous month. The euro area manufacturing PMI was 62.5 in March, above the previous month. On the other hand, ECB President Christine Lagarde made a commitment that short-term movements in the economy will not guide banking policies. After these developments, even though the Euro assets started to attack against the dollar, it continues to maintain its weak appearance in the general picture.

If prices stay below 1.1750 in the EURUSD parity, the rises can reach 1.1850 and 1.19 resistance levels with 1.18 resistance. However, for the turns that can come from the 1.18 level, 1.1750 is the first crossing point. If these lower level closures are on the agenda, retractions can be expected to accelerate within the framework of 1.17 and 1.1650 support levels.