Important events today:

US: Treasury Department Auctions.

For the third Monday in a row, the U.S. Treasury Department will be auctioning $99 billion in Treasury bonds. Last Monday’s event contributed to a stronger dollar in the U.S. session and I expect a similar dynamic this time around. At the same time I do not expect a strong growth of the dollar, because at the debt market the yields of the American government bonds are decreasing, and in such periods it is difficult for the dollar to show a steady growth.

The current situation looks more like a technical correction after a strong rise of Euro rather than a trend reversal. Moreover, the ECB is “getting smart” and promises investors to actively raise interest rates and reduce the asset balance in 2023, which is also favorable to the growth of the European currency.

Recommendations: flat 1.0555 – 1.0665