EUR/USD: Technical break, strong yields hint at 1.0900, ECB’s Lagarde eyed By anilpanchal7 EURUSD ECB Fed YieldCurve Ukraine
That said, the US 10-year Treasury yields and the 2-year counterpart both rise to a fresh high since May 2019 while taking the bids near 2.33% and 2.17% respectively level by the press time. Behind the moves are the US Federal Reserve policymakers’ hawkish mood and inflation fears.
Atlanta Fed President Bostic and Richmond Fed’s Barkin promoted the US central bank’s ability to restrain inflation by indirectly signaling a faster pace of the rate hike. However, the comments from Fed Chairwho said, “The Fed will raise rates by more than 25bps at a meeting or meetings if necessary,” offered a major upside momentum to the T-bond coupons.
On the same line were comments from International Monetary Fund’s Asia-Pacific Director Changyong Rhee who said, “The US has the room to raise interest rates.” IMF’s Rhee also mentioned that Asia’s inflation will peak in Q2 of this year. It’s worth noting that firmer US inflation expectations, as portrayed by the 10-year breakeven inflation rate per the St. Louis Federal Reserve data, also underpins the firmer yields and weigh on the EUR/USD prices.
Alternatively, Russia’s second coupon payment, as signaled by Reuters’ source, joined Ukraine President Volodymyr Zelenskyy’s readinessto challenge the pair bears of late. Previously, Ukraine President Zelenskyy mentioned that no immediate decision is possible on occupied Ukrainian territory per Interfax. Additionally, US President Joe Biden also cited fears of a cyberattack against the US.
At home, European Central Bank President Christine Lagarde dismissed risks of stagflation in her speech at the Institut Montaigne, in Paris, on Monday. “ECB monetary policies will not be in sync with the Fed policy,” adds
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