The EURUSD pair logged mild losses on Wednesday, March 3, down 0.23% at 1.2062. After the European opening, the price action rose to 1.2113, from which it slipped to 1.2043. The weakening of the euro coincided with a rise in 10-year US Treasury yields from 1.405% to 1.496%.
After the pullback, the key pair stabilized around the balance line at 1.2058. Federal Reserve Bank of Philadelphia President Patrick Harker spoke yesterday, but even he was unable to appease the markets.
Harker said he did not expect interest rates to be raised until 2023. The Fed may consider yield curve control. In line with this strategy, the central bank commits to buying US Treasury bonds with a specific maturity until their yields fall below the designated levels.
Today’s macro agenda (GMT+3)
At the time of writing, the euro was trading at 1.2058, while the 10-year Treasury yield dropped to 1.47%. Market participants will be focused on the outcome of today’s OPEC+ meeting and Fed Chair Jerome Powell’s speech.
The OPEC+ decision will exert an impact on oil prices and the Canadian dollar. Powell's comments will be closely watched as market players attempt to fathom the future actions of the central bank in response to the recent spike in 10-year sovereign bond yields. Heightened volatility can be expected during the North American session. The single currency could experience gyrations at 10:00 GMT after retail sales and labor market data come out of the Eurozone.