Forex. Euro/Dollar (EUR/USD) forecast for today.
During the day, there was a negative dynamics of trading in the euro/dollar pair. It is possible that market participants closed long positions on the euro before the publication of important economic statistics for this week. The focus will be on the number of initial applications for unemployment benefits, the index of manufacturing activity from the Philadelphia Federal Reserve and sales in the secondary housing market.
The yield on 10-year US Treasury bonds has risen significantly, and now it is at 1.847%.
On Tuesday, the dollar received support as concerns about inflation led to the fact that the yield of 10-year US government bonds reached the highest level in the last 2 years. Meanwhile, the yield of 2-year US Treasuries rose to 1.026% from 0.965% at the close of the previous session, it held near the highs since February 2020.
The interest rate of 30-year Treasury bonds increased to 2.165% from 2.114%.
According to many experts, the market is beginning to quickly prepare for an increase in inflation and a more aggressive Fed policy. The probability of a rate hike in March is now estimated at 100%.
The number of construction permits issued and the volume of construction of new houses will be released today.