Important events today:

9:00 UTC – US: Germany: Business Environment Indicator from IFO.

The U.S. debt market is no longer waiting for the U.S. Federal Reserve to raise interest rates. Short-term government bond yields are now 0.31% below the Fed rate and 10-year yields are 1.6% below the Fed rate. Moreover, the Fed Funds rate futures, which are traded on the Chicago Stock Exchange, indicate a rate cut in July.

According to debt market investors, the Fed will not be able to tighten monetary policy any further as problems in the banking system will intensify each week. This is a negative signal for the dollar as the market was initially set for the monetary regulator to raise rates at the meetings on May 3 and June 14.

Recommendations: Buy 1.0740/1.0710 and TP 1.0810.