Equities advance, while government bond yields remain subdued, weighing on the greenback.Thekeeps advancing on Tuesday, trading in the 1.1260 price zone. The American dollar is finding some room to correct higher heading into the US opening but remains in the red against most of its major rivals. The greenback broad’s weakness seems directly linked to the better tone of global equities and lower US government bond yields, as the 10-year Treasury note currently yields 1.75%.
Data coming from the Union was mixed, although generally discouraging. German Retail Sales fell by 5.5% MoM, while Markit published the final reading of the January Manufacturing PMIs, most of which were downwardly revised. The German figure was confirmed at 59.8, while the one for the EU printed at 58.7., foreseen at 57.5 from 58.7 previously, and the December JOLTS Job Openings.The EUR/USD pair trades a few pips above the 38.
According to the daily chart, a sustained advance it’s still unlikely. The 100 and 200 SMAs, heading firmly lower well above the current level, while the 20 SMA stands directionless around 1.1320. In the meantime, technical indicators remain within negative levels, with the Momentum heading lower and the RSI hovering around 46.