Forex Today: ECB subtle batting higher yields

FXStreet Team FXStreet

What you need to know on Friday, March 12:

The dollar fell as US Treasury yields surged. The yield on the 10-year note fell to 1.47%, recovering afterwards, although the greenback remained under pressure.

Wall Street surged, with the DJIA posting fresh all-time highs and the S&P flirting with record highs. The Nasdaq added over 2%.

The EUR/USD approaches 1.2000 after the ECB’s Monetary policy decision, while the GBP/USD pair trades around 1.3980 heading into the Asian opening. Commodity-linked currencies surged alongside equities, while USD/JPY remained within familiar levels.

Spot gold rose to $ 1,739.82 intraday but trimmed gains ahead of the close, ending the day around 1,723. Crude oil prices recovered some ground, with WTI finishing the day at $ 66.00 a barrel.

The European Central Bank had a monetary policy meeting, and as widely anticipated, it maintained rates unchanged, alongside the size of PEPP. Policymakers announced that bond purchases over the next quarter to be conducted at a significantly higher pace than during the first months of this year. German bund yields fell on the headline, but EUR/USD hold on to the higher ground. Within her press conference, President Christine Lagarde said that the ECB is watching the exchange rate, adding that the central bank is ready to recalibrate its tools.

US President Joe Biden signed the $1.9 trillion coronavirus relief bill into law.

Some EU countries suspended vaccinations with the AstraZeneca shot after some serious cases of blood cots were reported. Meanwhile, the distribution of covid vaccines in the area remains sluggish, and more delays are expected, all of which will undermine the region’s economic comeback. Although there is no proven connection between the inoculation of the vaccine and the adverse reactions, several countries have banned the use of at least one batch of the COVID-19 shot.

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FXStreet Team

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EUR/USD hovers around nine-day EMA above 1.1800

EUR/USD remains in the positive territory after registering modest gains in the previous session, trading around 1.1820 during the Asian hours on Monday. The 14-day Relative Strength Index momentum indicator at 54 is edging higher, signaling improving momentum. RSI near mid-50s keeps momentum balanced. A sustained push above 60 would firm bullish control.

GBP/USD holds medium-term bullish bias above 1.3600

The GBP/USD pair trades on a softer note around 1.3605 during the early European session on Monday. Growing expectation of the Bank of England’s interest-rate cut weighs on the Pound Sterling against the Greenback.

Gold sticks to gains above $5,000 as China's buying and Fed rate-cut bets drive demand

Gold surges past the $5,000 psychological mark during the Asian session on Monday in reaction to the weekend data, showing that the People's Bank of China extended its buying spree for a 15th month in January. Moreover, dovish US Federal Reserve expectations and concerns about the central bank's independence drag the US Dollar lower for the second straight day, providing an additional boost to the non-yielding yellow metal.

Bitcoin, Ethereum and Ripple consolidate after massive sell-off

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Tariffs are not only inflationary for a nation but also risk undermining the trust and credibility that go hand in hand with the responsibility of being the leading nation in the free world and controlling the world’s reserve currency.

Bitcoin, Ethereum and Ripple consolidate after massive sell-off

Bitcoin, Ethereum, and Ripple prices consolidated on Monday after correcting by nearly 9%, 8%, and 10% in the previous week, respectively. BTC is hovering around $70,000, while ETH and XRP are facing rejection at key levels. Traders should be cautious: despite recent stabilization, upside recovery for these top three cryptocurrencies is capped as the broader trend remains bearish.