EUR/USD: Falling yields and some hope for Europe leave 1.20 for grabs

Break or bounce? That is the question for EUR/USD as it approaches 1.20 for the fourth time since early March and the second time this week, Yohay Elam, an Analyst at FXStreet, reports.

Previous and upcoming US data may trigger a dollar rally

“Fresh demand for US Treasuries, reversing previous trends, is dragging the dollar lower. Ten-year yields are depressed well below 1.57% after hitting 1.77% several weeks ago, and that is capping the greenback.”

“The last significant release for the week is the University of Michigan's Consumer Sentiment Index. Preliminary figures for April will likely show an ongoing improvement, indicating an extended shopping spree. In addition, Building Permits and Housing Starts statistics for March are due out and they have likely increased. America's ‘race for space’ – room to work at home – is driving the housing sector higher.”

“Nearly one of every five Europeans has received at least one shot. While frustration about lockdowns is elevated, the expected pickup in immunization and early results from the campaign may boost the commo