– EURUSD exchange rate rise 0.41% to 1.19322.
– GBPUSD recovers to 1.38578.
– US treasury yields weakens US Dollar sentiment.
The Euro US Dollar exchange rate is pushing higher today as a pullback in US treasury yields weakens USD sentiment.
At the time of writing EURUSD is currently trading at around $1.9213.
READ: The Outlook for Pound to Dollar Exchange Rate March 22: Above 1.40, Next GBP/USD Target 1.42
US Dollar (USD) Loses Traction as US Treasury Yields Pullback
The US Dollar is losing traction heading this afternoon as a pullback in US Treasury Yields causes the currency to fall.
Earlier in the day the US Dollar had made some gains after Turkish president Erdogan decided to fire the chief of the Turkish central bank, however markets calmed soon after.
Furthermore, the release of the Chicago Fed National Activity Index showed that confidence in the US economy fell at the end of Q1. While forecasts had pointed towards a modest growth in the index investors were disappointed to find that it had instead dropped from -1.09.
An improving market mood has caused investors to take risks and move away from the safe-haven ‘Greenback.’
Euro (EUR) Supported by European Central Bank Comments
The Euro has found itself supported against the US Dollar heading into this afternoon’s session following comments from European Central Bank (ECB) member Klaas Knot.
Speaking in a news conference earlier today, Klaas Knot said that the ECB’s recent decision to accelerate its bond purchasing is a temporary move, meant to reduce borrowing costs until growth and inflation pick up.
However, the Euro faces some worries as the UK-EU row over vaccine exports continues, with EU members meeting on Thursday to discuss the delayed vaccine rollout across the bloc and a surge in cases across many member countries the Euro could see itself struggling.
An EU official said on Sunday that:
‘The Brits are insisting that the Halix plant in the Netherlands must deliver the drug substance produced there to them. That doesn’t work. What is produced in Halix (in the Netherlands) has to go to the EU.’
READ: Pound to Euro Exchange Rate Forecast Next: Is 1.17 Possible Soon for GBP EUR Buyers?
Euro Dollar Forecast: Eurozone PMIs in Focus
Looking towards Wednesday, Euro investors will be keeping an eye on flash PMI data from across the Eurozone, which could give an indication into how the bloc is performing.
As cases and fatalities increase in many Eurozone countries and Germany looks to extend its lockdown the Euro could see itself suffering.
For US Dollar traders, durable goods orders for February are forecast to increase 1.1%, a growth that could see the US Dollar heading higher, would shows signs the US economy is strengthening.
The Euro to Dollar exchange rate will also be moved by any further coronavirus developments, with any indication that UK-EU tensions surrounding vaccine exports has been resolved helping support EUR sentiment.