- EUR/USD remains on track to end the day in the positive territory.
- US Dollar Index retreats below 91.80 during the American session.
- 10-year US T-bond yield is losing nearly 2% on Monday.
After starting the day with a bearish gap, the EUR/USD pair reversed its direction and rose steadily throughout the day. With the greenback coming under renewed bearish pressure during the American trading hours, the pair climbed to a fresh daily high of 1.1947. As of writing, EUR/USD was up 0.33% on the day at 1.1942.
USD struggles to find demand
The US Treasury bond yields continue to drive the USD’s performance against its rivals amid a lock of significant fundamental drivers. The benchmark 10-year US Treasury bond yields, which posted gains for the seventh straight time last week, is currently down 1.75% at 1.686. Consequently, the US Dollar Index (DXY) is losing 0.2% at 91.73.
Earlier in the day, the data from the US revealed that the Chicago Fed’s National Activity Index dropped to -1.09 in February and missed the market expectation of 0.21.
On the other hand, Christine Lagarde, President of the European Central Bank (ECB), said on Monday that the near-term economic outlook in the euro area is subject to uncertainty. “We stand ready to adjust all of our instruments, as appropriate, to ensure that inflation moves towards our aim in a sustained manner, in line with our commitment to symmetry,” Lagarde reiterated in an ECB blog post.
There won’t be any high-tier data releases featured in the European economic docket on Tuesday. Later in the day, FOMC Chairman Jerome Powell will be testifying before Congress.