EUR/USD Benefits from U. S. Dollar’s Weakness

EUR/USD advances to begin the trading week on the right stance, up 0.18%, trading at 1.1587 during the day, as positive market sentiment as witnessed by rising US stock indices prevails the financial markets.

In the Forex market, risk-sensitive currencies rise, with the NZD, the GBP, and the AUD, as the strongest ones, while the USD falls, despite higher U. S. Treasury bond yields.

Three central banks held their monetary policy meetings last week and they all decided to push back higher interest rates, in line with what European Central Bank (ECB) President Christine Lagarde expressed two weeks ago.

On Monday, Philip Lane, ECB’s Chief Economist, said that supply bottlenecks and higher energy prices are the main risks of inflation and economic recovery.

The Eurozone is still confronted with weak medium-term inflation dynamics remains compelling”, added Lane who believes that the economic activity could outperform the central bank’s expectations only if consumer confidence increase and saves less than expected.