22 March 2021, EUR/USD
EURUSD trading plan:
Big U.S. banks will have to resume holding an extra layer of loss-absorbing capital against U.S. Treasuries and central bank deposits from next month after the Federal Reserve said on Friday it would not extend a temporary pandemic regulatory break due to expire this month. The leverage ratio was adopted after the 2007-2009 financial crises as a safeguard to prevent big banks from manipulating other capital rules. It requires them to hold additional capital against assets regardless of their risk. The yield on U.S. 10-year notes, which has risen sharply in the past seven weeks on growth expectations, hovered near a 14-month peak at 1.72%. This is a positive signal for the dollar.
Investment idea: sell 1.1920 and take profit 1.1880.