Good and bad news | 31 марта 2021

31 марта 2021, EUR/USD

Good and bad news

EURUSD trading plan:

European shares headed towards record highs on Tuesday on hopes of a vaccine-driven economic recovery. Bank stocks jumped 2.0%, rebounding after a 1% drop on Monday, as U.S. and European government bond yields rose on hopes of stronger economic growth and inflation ahead. This is a positive signal for the euro! The sell-off in the gold market will have a negative impact on the value of the European currency, as the assets are correlated with each other. Gold has declined more than 3% so far this month and 11.4% during the quarter. There is a relationship between the yield on US 10-year Treasuries and gold in the market. Gold depreciates during periods when bond yields rise and inflation in the United States rises. The bond yield is 1.74%, and inflation on the PCE indicator is 1.5%.

Investment idea: range 1.1685 -1.1780

David Johnson
Analyst of «FreshForex» company
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