November 16, 2021

Bloody Euro! USD Gets 'Crazy' For Rise

 The weakness of the euro and rising US bond yields gave new impetus to the greenback dollar to soar to its latest high in more than a year against its main rival.

The euro fell below 1.1400 for the first time since July last year, weighed down by concerns about the Covid-19 outbreak returning to Europe, as well as being affected by the latest statement by European Central Bank (ECB) President Christine Lagarde.

Speaking to EU lawmakers on Monday, Lagarde said if the ECB took tightening measures now, it feared it would cause more harm than good.

The decline of the euro has pushed the greenback dollar higher, which is also supported by an increase in 10 -year US bond yields to 1.60% although no clear catalyst was the cause of the rise.

The signing of the $ 1 trillion infrastructure stimulus package by President Joe Biden is seen as having little impact on the USD.

This may be due to investors being less excited about the news of this stimulus package as it has been delayed many times and the currency is also still affected by rising inflation concerns.

The US retail sales data that will be published tonight will be the main focus of investors which is sure to be the next driver for the market.