The Euro rises slightly higher after a drop in the US Dollar due to a decline in US Treasury yields. US Treasury yields fell significantly lower, with the 10-Year Treasury yield currently printing at 2.85%. The drop in yields was attributed to the market pricing in an alteration of the Fed’s rate hike plan for 2019, which may be announced during this Wednesday’s FOMC meeting. Alongside any changes in US Treasury yields, investors need to monitor the figure release of the German Ifo Business Climate Index and the housing figures from the US.
The Euro bounces off the 1.1310 support level and rises towards the 1.1315 resistance level. Most recently, prices have nudged slightly above the 13 and 50-period moving averages signaling a possible shift in the momentum of the pair. The shift in the momentum of the pair will be confirmed if prices break above the 200-period moving average and the 1.1384 resistance level which will then pave the way for a rise towards 1.1476.