Key Insights
- EUR/USD moved towards the 1.0850 level.
- AUD/USD climbed back above the 0.6700 level.
- USD/JPY faced resistance near 131.50 and pulled back.
U.S. Dollar
U.S. dollar remains under pressure despite rising Treasury yields. The yield of 10-year Treasuries managed to settle above the 3.55% level, while the yield of 2-year Treasuries climbed above 4.00%. However, these moves did not provide any material support to the American currency.
Today, traders focused on the trade balance report which showed that trade deficit in goods reached $91.6 billion in February. CB Consumer Confidence exceeded analyst expectations, which was bearish for safe-haven assets like U.S. dollar.
From a big picture point of view, U.S. Dollar Index is slowly moving towards the 102 level as traders expect that Fed will be forced to be more dovish to contain the banking crisis.
EUR/USD
EUR/USD is trying to settle above the 1.0850 level as traders bet that ECB will continue to raise rates despite problems in the European banking sector. If EUR/USD manages to climb above 1.0850, it will move towards the resistance level at 1.0875.
GBP/USD
GBP/USD is also moving higher in today’s trading session. RSI remains in the moderate territory, and there is plenty of room to gain additional upside momentum. A successful test of the resistance near 1.2340 will push GBP/USD towards the 1.2400 level.
AUD/USD
USD/JPY pulled back below the 131 level after an unsuccessful attempt to settle above 131.50. Interestingly, USD/JPY failed to gain additional upside momentum despite rising Treasury yields. The nearest significant support level for USD/JPY is located at 130.50. A move below this level will open the way to the test of the psychologically important support at 130.
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