EUR/USD weaker, challenging lows near 1.2200
|- The pair keeps the leg lower unchanged around the 1.22 milestone.
- US 10-year yields tested the proximity of 3.0%, multi-year tops.
- US Existing Home Sales, Manufacturing PMI came in stronger.
The selling pressure continues to hurt the single currency on Monday and is now dragging EUR/USD to test fresh lows in the 1.2215/20 band.
EUR/USD weaker on US yields, USD upside
The pair keeps losing ground today in response to an increasing demand for the greenback, which in turn has been sustained by a solid performance of yields in the US money markets.
In fact, yields of the US 10-year note clinched new multi-year tops just below the critical 3.0% handle earlier in the session. Despite yields eased some ground afterwards, the underlying up move stays unchanged for the time being.
In the US data space, better-than-expected advanced Markit’s Manufacturing PMI and Existing Home Sales during March also lent extra legs to the buck’s rally.
Looking ahead, the European currency is poised to remain under pressure as speculations of a dovish message from the Council at the ECB meeting on Thursday keep gathering pace among traders.
EUR/USD levels to watch
At the moment, the pair is losing 0.55% at 1.2220 facing immediate contention at 1.2206 (low Feb.9) seconded by 1.2165 (low Jan.18) and finally 1.2153 (low Mar.1). On the upside, a break above 1.2341 (10-day sma) would target 1.2414 (high Apr.17) en route to 1.2478 (high Mar.27).
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