EUR declined against Dollar to the level of 1.2020.
German 10-year bond yields retreated from Monday's peaks, returning to -0.2% on Tuesday. The moderate surge was also supported by comments from ECB Vice President Luis de Guindos. A central bank official said the regulator could begin phasing out current stimulus measures as soon as the introduction of the vaccine goes at a steady pace and the economic recovery gathers momentum.
The April rally of EUR/USD forex pair encountered strong resistance near the level of 1.2150, which subsequently caused a corrective decline to the support of 1.2000. The strong growth of the pair recorded in recent weeks was caused by the sell-off of the USD after the soft tone of the last FOMC meeting. Despite the correction on Tuesday, analysts at Commerzbank believe that Dollar will not show significant strengthening. The bank sees market expectations as somewhat inflated, ahead of the release of US employment data this week.
USD declined after indicators of manufacturing activity were below forecasts, but later regained its position as the price component reached its highest level since the pre-crisis moment. Overly optimistic market expectations may eventually put pressure on the US Dollar.
Trading signals for the EUR/USD forex currency pair
The forecast assumes a decline in EUR/USD to the price values of 1.2000, 1.1980 and 1.1950.