US yields have been lagging somewhat. Thus the yield differential turned positive for the EURUSD pair.
Earlier in the session, the UK claimant count change for February came in better than expected, with the unemployment rate falling to 4.9%, versus the expected rise to 5.1%, compared with January’s 5.0%. Sterling was trading higher afterward, with the GBPUSD pair rising above the important 1.40 level again.
Additionally, the People’s Bank of China kept its main interest rate unchanged at 3.85%, as widely expected. There are no further major macro data on the agenda today. Therefore volatility could be lower throughout the day.
US equities corrected lower yesterday, thus we should expect a strong rally today as indices are not allowed to drop two days in a week.
Precious metals also fell yesterday, but silver is up 1% today, and gold was trading flat at around 1,770 USD at the time of writing.