USD Continues to Shine on Rising Yields

FEARS OF A SPIKE IN INFLATION PUSH YIELDS HIGHER

The US dollar traded once again higher against the majority of the other G10 currencies. It gained the most versus JPY, AUD, NZD, and CHF, while it lost some ground only against NOK. The greenback was found virtually unchanged against GBP and CAD.

S&P 500 — TECHNICAL OUTLOOK

Although the S&P 500 index managed to climb back up recently, it still trades below its short-term tentative downside resistance line drawn from the high of February 16th. We might see more upside to come, but if the price struggles to overcome that downside line, we may continue looking south. We will take a somewhat-bearish stance for now.

USD/CHF — TECHNICAL OUTLOOK

USD/CHF continues to drift higher, while trading above a short-term tentative upside support line taken from the low of February 26th. This morning, after reaching the 0.9375 hurdle, the pair reversed a bit lower. If the pair goes more to the downside, we may class this move as a temporary correction, especially if the rate remains above that upside line. For now, we will take a somewhat positive approach.

AS FOR TODAY’S EVENTS

The calendar appears very light today, with the only data worth mentioning being Eurozone’s final GDP for Q4 and the API (American Petroleum Institute) report on crude oil inventories for last week. Eurozone’s final GDP print is forecast to confirm its second estimate of -0.6% qoq, while no forecast is available for the API report.

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