Important events today:

US: Treasury Department Auctions.

The background today is mixed. On the one hand, we may expect decline in the European currency on the background of the inflation growth in the major eurozone economies. Thus, in Germany the index rose to 10.4% and in Italy, to 11.9%. Tomorrow we will have the whole Eurozone inflation data and there is a high probability the rate will exceed 10% which with the ECB rate of 2% will make the real negative interest rate 8%. The U.S. has a negative real interest rate of just under 5% and that dynamic is negative for the euro.

On the other hand, there are rumors circulating in the market that in the very near future the US Treasury will start buying Treasuries to stabilize the debt market. Some U.S. banks argue that U.S. Treasury Secretary Janet Yellen will announce such a decision this week. In this case, the U.S. government bond yields will go down, which is negative for the dollar.

Recommendations: flat 0.9890 – 0.9990.