EUR/USD reverses Friday’s losses even as bulls step back from intraday top. Off in US, stimulus hopes propel risk-on mood, drag DXY. Germany’s Preliminary
5/28/2021 7:33:17 AM GMT
EUR/USD has been edging lower as US yields rise and ahead of US data.
Biden s big-budget and a correction of some of the dollar falls in May could push the pair lower.
Friday s four-hour chart is showing momentum has turned negative.
How far does $6 trillion go? In the short term, a mere press report about President Joe Biden s fiscal 2022 budget is pushing the dollar higher. While stock cheer the prospects of more government investment and faster growth, the specter of larger US debt weighs on bonds. Treasury yields are rising and the greenback follows.
Will this trend continue? The dollar has also received a boost from Thursday s mostly upbeat economic releases and Friday s publications could add fuel to the fire. While headline Durable Goods Orders disappointed with a drop, the non-defense ex-air component – aka core of the core surprised with a leap of over 2%.