EURUSD retreated to 1.1400 as soon as the US 10-year bond yield started rising.
The major currency pair is correcting. The current quote for the instrument is 1.1393.
After a pause in view of Martin Luther King Jr. Day in the US, investors are back to the debt market, where the US 10-year bond yield started rising quickly.
Market players’ attention is still focused on the upcoming moves of the US Fed relating to tightening its monetary policy. There is a new rumour saying that the regulator might raise the rate by 50 basis points as early as its March meeting without analysing the situation after the QE programme termination.
That’s something new: investors did expect the Fed to be more active, but not to such extent.
If the Fed really starts raising the rate in March, there might be four rate hikes in 2022.
At the moment, the regulator is quiet before the meeting, so there won’t be any official comments until next Wednesday.
Source: Roboforex
