Today the US Treasury will add $5 billion to the financial system as part of its treasury bond redemption operations. Not a lot, but at least something. Meanwhile, tomorrow evening the Treasury will hold a large-scale auction for the placement of debt securities in the amount of $148.4 billion – this will be the maximum volume in the first quarter. Investors understand that the withdrawal of liquidity by the US Treasury will support the dollar tomorrow, and therefore, it is clearly not worth rushing to buy euro today.

The decline in gold quotes cannot be ignored, inasmuch as the European currency and the precious metal are historically correlated with each other. Traders are selling the yellow metal on expectations that the global economy will accelerate this year – this is the first reason. The second reason is the rise in the yield on US 10-year government bonds, which is now higher than inflation in the US, which is historically negative for gold.

Investment idea: Sell 1.1785/1.1800 and take profit 1.1745.