Gold is clinging to support around the $1,715 mark after plummeting nearly $100 in the last two weeks. Alongside a modest decline in US Treasury yields, gold might look to inch higher in the days a.
The US Dollar has posted a string of gains in recent weeks as rising Treasury yields have threatened risk assets and currencies. USD/MXN may face consolidation as USD strength wanes and resistance .
Euro Forecast: EUR/USD Outlook Improves as German Bund Yields Rise
Fundamental Euro Forecast: Bullish
The European Central Bank’s Governing Council has clearly decided to stress to the markets that it’s watching rising Eurozone sovereign bond yields.
That’s a way of signaling that it doesn’t want them to rise too far too fast.
But last week they rose anyway and that’s positive for both EUR/USD and the major Euro cross rates such as EUR/GBP. Advertisement
Euro price outlook positive
Members of the European Central Bank’s Governing council, including President Christine Lagarde, Germany’s Isabel Schnabel and Chief Economist Philip Lane, were all stressing last week that they are closely watching Eurozone sovereign bond yields – code for warning the markets that they don’t want them to rise too far too fast.
The Dow Jones and Nasdaq 100 look to be on diverging technical paths as volatility spikes. Meanwhile, the S&P 500 teeters on support as it splits the difference between its sister indices.
EUR/USD has creeped higher in February, edging closer to the 2021 peak near 1.2348. With the technical landscape tilting higher and USD weakness present, can EUR/USD continue its climb?