For the first time in three and a half years, the yield spread has exceeded the 1% mark on ten-year and two-year US Treasuries. Investors expect the rapid growth of the world economy this year. In the past, strong increase in this indicator leads to the growth in the EURUSD pair and vice versa.

Over the past twenty years, this indicator peaked in the area of 2.66 – 2.9%, after which the trend reversed, which had a positive effect on the value of the dollar. Therefore, a long period of growth in this yield spread is expected, which allows us to conclude that there is an upward trend in this currency pair. A decline in quotes to the area of the psychological level 1.2000 is desirable to use to open Buy positions.

Investment idea: Buy 1.2000/1.1980 and take profit 1.2100.