EUR/USD: Poised to extend its decline towards 1.1950

The EUR/USD pair trades in the 1.2030 price zone and is at risk of falling further and piercing February’s low, Valeria Bednarik, Chief Analyst at FXStreet, reports.

See: EUR/USD to strengthen with vaccine rollout in the second quarter – CIBC

Key quotes
“Resurgent government bond yields are behind the latest greenback’s advance, although yields retreated modestly ahead of the US Federal Reserve chief Jerome Powell’s speech. Investors are waiting to hear Powell’s opinion on yields and whether the latest rally may affect the current monetary policy.”

“The EU published January Retail Sales which were down by 5.9% on a monthly basis, much worse than anticipated, while the annual reading printed at -6.4% also missing the market’s forecast, adding pressure on the shared currency.”
“The US has just published Initial Jobless Claims for February 26, which came in better than anticipated at 745K.”

“The decline will likely accelerate on a break below 1.2000, towards this month’s low at 1.1951.”