1️⃣ Yield gains will not stop anytime soon, and USD will continue to benefit
- The dollar fell in early European session on Tuesday, but remains near a multi-month high thanks to solid treasury bond yields and strong expectations for the US economy to recover.
Another test for the market and the USD would be the sale of 3-year Treasury bonds, a week after a match. Less well-received 7-year bond prices triggered a yield hike. Three-year bonds are more sensitive to short-term rates and therefore the bid will suggest a time when investors expect the Fed to start raising interest rates.
Driven by the dollar's rise this year is also on positive economic data, analysts have revised their forecasts for U.S. growth higher while tending to revise down forecasts. for other countries.
2️⃣ ECB Members: Dual recession was no longer the most important problem
The comment of the Governor of the Bank of France, Francois Villeroy de Galhau has the following notable points:
- French economic growth this year may reach at least 5%;
🌈🌈Good morning! Have a nice day!
- The French Central Bank estimates that the French economy will avoid a double recession, stable economic performance leading to “slight” growth in Q1;
- I think having a double recession does not matter much, because the focus is now not on how things are going in Q1 but on how much the eurozone economy could grow in the second half of 2021 - especially especially in the summer months;
- Vaccine deployment and reopening the economy are more important factors at present;
3️⃣ Notable facts and economic data today
- At tonight, the US monthly CPI will be announced in February, is expected to be 0.4%, compared with the previous value of 0.3%. If the data is higher than expected, it could become the catalyst for further increases in US Treasury yields.
- The US House of Representatives is expected to consider and pass the stimulus bill
- The Bank of Canada announced its interest rate decision. The market is not expected to change interest rates, focus on the Canadian dollar, inflation and debt buying.
- US EIA crude oil inventories are announced for the week to March 5th. The market is expected to drop 833,000 barrels, while API inventories are announced at the beginning of the morning. now recorded an unexpected increase.
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