On Monday, during the European session, the US dollar corrected across the market on the back of a rise in US bond yields. US 10Y bonds grew by 1.21% to 2.223%. The euro/dollar rate fell to 1.1787 while the pound/dollar fell to 1.2963. The dollar’s recovery has been negative not only for the major currencies, but also for precious metals. Gold has fallen by 0.67% to 1280.80 USD.
Friday’s weak CPI data has already been factored into the price by traders. Now they await some new drivers; data on UK inflation, US retail sales, Eurozone GDP and the minutes of the recent FOMC meeting.
The euro/dollar pair has touched the support at 1.1793. An unsuccessful attempt to rebound from here could lead to a weakening euro against the dollar as far as 1.1748. Should the rate fall below 1.1775, buyers will start closing the long positions they opened on Friday after the US inflation data for July was released.
The intraday target for the euro of 1.1793 has been reached. The pair is technically ready for a phase of growth but it’s not clear whether American traders and investors are ready to buy the euro. Keep an eye on the market so as not to miss a thing.