Soft financing conditions, combined with accelerating vaccinations, the adoption of the next package of fiscal aid and the prospect of lifting quarantine restrictions and opening the economy, increases the Fed’s tolerance for higher yields on government bonds, economists say.
Yesterday, the yield on 10-year US bonds rose and today continued to rise, reaching a new local 14-month high of 1.738%, simultaneously supporting the US dollar after its fall the day before.
As of this writing, DXY futures are traded near 91.61 mark, 25 pips above yesterday’s low.
The dollar also retains the status of a protective asset after news that some European countries have suspended vaccination with the drug AstraZeneca (NASDAQ:AZN) after it became known about its side effects.
The dollar remains stable and shows no signs of sustained weakening after yesterday’s decision and statements by the Fed. The market appears to be getting used to the overly soft monetary policy of the Fed and other major global central banks.
Remaining to trade above the key support levels 0.6970, 0.6900, 0.6800 and in the ascending channel on the weekly chart, NZD/USD maintains long-term positive dynamics. Nothing threatens long positions on NZD/USD above the support levels 0.7211, 0.7201.
Sell Stop 0.7190. Stop-Loss 0.7275. Take-Profit 0.7155, 0.7100, 0.7000, 0.6900, 0.6865, 0.6800 Buy Stop 0.7275. Stop-Loss 0.7190. Take-Profit 0.7315, 0.7380, 0.7430, 0.7550