The Euro reached its early March levels. Overview for 20.04.2021

EURUSD is quickly rising amid the low US bond yield. 

The major currency pair is getting more expensive and approaching its six-week highs. The current quote for the instrument is 1.2072.

The “greenback” is losing its effectiveness: when the US bond yield falls, the USD runs out of steam. It might make investors nervous because they trust in the American currency due to a lot of stimulus programs and their positive results. 

The key highlight for EURUSD this week is the European Central Bank meeting. What can market players expect from the regulator?  

The rates are highly likely to remain intact this time, and probably until the end of 2021. The thing that is very interesting for investors right now is the regulator’s stance on the quick growth of the Consumer Price Index and the bond yield. It is quite possible that the ECB won’t talk about inflation during the April meeting at all. Another aspect, the growth of the bond yield may be perceived as positive only if it was caused by the economic recovery and better economic outlook. 

In theory, the meeting should go calm and quiet. In anticipation of the June meeting, which may be a crucial moment, the ECB requires some time to analyze a lot of information relating to inflation and the economic growth rate.

The next macroeconomic report from the USA that investors might find interesting will be published only on Thursday, that’s why market players have plenty of time to monitor the situation.