EURUSD – Up
EURUSD trading plan:
Germany’s short-dated yields hit fresh multi-year highs. European Central Bank policymaker Joachim Nagel told a German banking conference that the central bank could not let up its fight against high inflation in the euro zone and that large rate hikes were necessary. Yields on the 10-year Bund, which serves as a benchmark for the wider region, fell 5 bps to 2.27%. The yield curve was flattening with the spread between German 10-year and 2-year yields at its lowest level since Sept. 22. The ECB at its last meeting raised interest rates by three-quarters of a percentage point to 1.5% and since then a number of top officials, including President Christine Lagarde, have reiterated the central bank’s commitment to tackling red-hot consumer price pressures.
Investment idea: buy 1.0030 and take profit 1.0100.
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