The current week in the financial markets turns to the FOMC decision and the NFP report. It is these two readings, combined with updates from the debt market and the results of the largest companies on Wall Street, that could determine future sentiment on global stock markets. In this regard, demand for the dollar seems crucial, for the EURUSD pair is currently trading in a zone of key support.
Yesterday's session brought a halt to downward movements on the EURUSD pair in the face of comments from the U.S. Treasury Department, which expects to take on $760 billion in net market debt in January-March, down $55 billion from the October 2023 estimate. The news triggered a drop in US 10-year yields during yesterday's session, which directly weakened the dollar. On the other hand, however, the EURUSD as a whole is trading within the 200-day exponential moving average, so possible strong NFP data and a hawkish stance by the FOMC (especially in the context of speculation about March rate cuts) could permanently knock out this level and initiate a somewhat broader downward correction.
Source: xStation
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