Dollar dives across the board as investors seem to be trying to corner Fed into another deep rate cut at March 18 meeting, or even before it. Fed funds futures are now pricing in 80.4% chance of -75bps cut to 0.25-0.50%. 10-year yield hits as low as 0.699 in European session and is currently trading at 0.774, down -0.141. 30-year yield hits as low as 1.274, currently at 1.362, down -0.183. Both are new record lows.
EUR/USD finally takes out 1.1239 resistance decisively, confirming medium term bottoming at 1.0777. At this point, we’re seeing rise from there as a corrective move. Further rise should be seen to 38.2% retracement of 1.2555 to 1.0777 at 1.1456 next. Reaction there will reveal the chance of medium term bullish reversal.
