Euro/Dollar
The euro fell against the dollar and stopped at 1.1410. The versatile dynamics of trading during the day caused an attempt to test the local resistance of 1.1427.
There is a slight increase in the yield of 10-year US Treasury bonds to 1.793%.
The media reports that even the European Central Bank will raise its key rate by the end of the year, which implies futures for short-term interest rates in Europe. The bank's management stubbornly refutes these forecasts.
Last week, the euro and the pound reached two-month highs, and this week began mainly with a fall. The euro rose 0.1% against the dollar to $1.1427, the pound rose 0.1% to $1.3682. There is a possibility that Prime Minister Boris Johnson will be asked to leave his post for periodic violations of the COVID-19 rules.
The main topic of today is the ZEW index of economic sentiment in Germany and the European Union.
Pound/Dollar
During the trading Tuesday, the pound/dollar exchange rate occupied low price levels. The currency pair was fixed in the area of the support level, at 1.3648.
According to the results of the last European and American sessions, the dollar was in the leading positions. Breaking through the support of 1.3648 by the currency pair will open the prospect of reaching 1.3597.
After a slight increase, the yield of ten-year UK bonds strengthened at the level of 1.1970%.
According to media reports, the economic situation in the United States is not the most stable and will only worsen in the near future. Experts predict a decline in the growth of the American economy, starting from the first quarter of 2022. Inflation is also expected to rise against the background of the next wave of COVID-19. This situation will affect consumer demand, businesses will have to deal with the consequences of disruptions in work and production.
It is expected to publish the average salary level, taking into account bonuses, information about unemployment and the volume of applications for benefits.
Gold
This week, gold continues to decline and is in the trading range of 1830 - 1814 dollars per ounce.
The average yield of the world's largest investment funds over the past year has not been able to exceed the S&P500 index.
The media continue to persistently predict the tightening of the monetary policy of central banks. At the beginning of the week, the yield on euro zone government bonds rose against the background of tightening monetary policy and forecasts about how the US rate hike will affect Europe.
There was an increase in the yield of ten-year German government bonds by two basis points, approaching the maximum level since May 2019.
According to Morgan Stanley experts, the growth of the Chinese economy will decrease by 40 basis points in the first quarter of this year. Outbreaks of the new COVID-19 strain "omicron" are likely to lead to the introduction of lockdowns. This will significantly affect economic activity in the country.
Cryptocurrencies
Bitcoin's breakdown of the key support at the level of $ 42450 activated sales in the framework of speculative trading. Today, the digital currency is trading in the range of 42450 - 40850 dollars.
According to the results of Monday, the capitalization of the cryptocurrency market amounted to 1.98 trillion US dollars. On Sunday there were figures - 2.06.
The forecasts of experts and the media regarding the digital currency market are not the most optimistic. According to UBS analysts, the decline of the world's largest cryptocurrency is expected soon. The arguments in favor of bitcoin, as a means of hedging inflation, are losing force and are declining. In recent weeks, the digital currency has sharply lost ground amid preparations for an interest rate hike by the Fed.
According to experts, the cryptocurrency still has a chance to recover. Europe was covered by a new wave of flu, the pace was faster than last year. There is a possibility of developing a double pandemic, with the addition of COVID-19.