EURUSD – Up
EURUSD trading plan:
Euro zone government bond yields fell as money markets scaled back their expectations of European Central Bank’s rate hikes amid concerns over potential gas supply cuts. Yields fell as money markets scaled back bets on European Central Bank rate hikes to 137 bps by December and bets on the terminal rate declined to around 1.3% in December 2023, from around 1.4% on Monday. Peripheral bonds underperformed for some of the session on concerns around the ECB’s so-called anti-fragmentation tool. The ECB has pledged work on a tool to contain an „unwarranted“ divergence between the borrowing costs of debt-laden member states like Italy and Germany’s that might hamper monetary policy transmission across the bloc.
Investment idea: sell 1.0077 and take profit 1.0014.
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