Euro Gets Stronger, USD No Longer Seen - - Financial Market Media No. 1 in the World Euro Gets Stronger, USD No Longer Seen Euro Gets Stronger, USD No Longer Seen

May 25, 2021

Euro Gets Stronger, USD No Longer Seen

 The US dollar’s ​​modest appreciation earlier in the week faded as 10 -year US treasury bond yields slipped lower below 1.6%.

In previous sessions, the market has seen several policymakers talk about current inflation where Governor Lael Brainard’s statement was the main focus.

He said that the US economy was in the midst of an unprecedented economic recovery and some obstacles on the supply chain would contribute to inflation.

In addition to that, he told that the Federal Reserve (Fed) has the tools to deal with inflation, if it moves continuously above the market. This suggests that investors need not worry about the current rise in inflation.

Meanwhile, St. Louis Fed President James Bullard said he expects to see more inflation, however, this increase is only temporary.

Bullard also said it would be time for the Fed to talk about monetary policy changes, but he doesn’t think the central bank should do it when the country still can’t get out of the Covid-19 crisis.

This has led most investors to believe that the Fed will take more time to start discussing changes in its very loose monetary policy.

Meanwhile, the euro rebounded following the decline in the US dollar, trading stronger above 1.22000 in the Asian session.