EUR/USD drops towards 1.1900 as bonds bears dominate ahead of US Pres. Biden’s speech

  • EUR/USD refreshes intraday lows, extends Friday’s pullback moves.
  • Yellen tried to placate bears but failed amid hopes of further stimulus, vaccine news.
  • ECB’s Kazaks teases scaling back of stimulus, Fed meeting will be the key.

EUR/USD takes offers around 1.1930, down 0.25% intraday, while heading into Monday’s European session. In doing so, the currency major drops for the second consecutive day as US Treasury yields keep favoring the US dollar ahead of US President Joe Biden’s speech, up for publishing at 17:45 GMT.

US 10-year Treasury yields stay mildly bid around 1.64%, the highest levels since February 2020, marked on Friday, as market players shrug off US Treasury Secretary Janet Yellen’s comments, published during the weekend. In her interview with the ABC, the diplomat accepted near-term risks to the rates but ruled out reflation fears. The ex-Fed Boss also praised US President Biden’s $1.9 trillion stimulus to escalate economic recovery in 2021.

Zeneca vaccine until March 29 and political plays in Germany also weigh on the EUR/USD prices.

Against this backdrop, stock futures in the US and Brussels pare early Asian gains whereas the US dollar index (DXY) gains 0.22% on a day while recently picking up bids near 91.80.

Looking forward, US President Joe Biden’s speech will be the key but all eyes will be on this week’s Fed meeting.

Also read: Will the Fed calm us treasury market volatility?

Technical analysis

EUR/USD bears eye re-test of 200-day EMA level, currently around 1.1835 amid last week’s failures to cross 100-day EMA, at 1.2006 now.

ADDITIONAL IMPORTANT LEVELS

“Source From Fxstreet”

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