Should We Keep an Eye on the U.S. 2- and 5-Year Treasury Auctions?

Should We Keep an Eye on the U.S. 2- and 5-Year Treasury Auctions?

27.06.2022

Last weekend, the U.S. dollar traded in a directionless range and weakened against the euro, with the EUR/USD pair rising slightly from 1.0511 to 1.0572.The euro was supported by the German Ifo Business Climate Index for June, released on the 24th, which came in at 92.3, exceeding the market forecast of 92.0.From a technical perspective, with the 200-period simple moving average (SMA) on the 4-hour chart acting as resistance above, attention will first focus on whether the EUR/USD pair can break above the 200-SMA line at 1.0585.

Among European currencies, the pound weakened against Oceania currencies, with the GBP/AUD pair falling approximately 160 pips from 1.7814 to 1.7652.Following a sharp decline last weekend, the GBP/AUD pair has broken below the 20-period moving average on the 4-hour chart. Given that the Australian dollar is the weakest currency during today’s Asian trading session, we need to carefully assess whether the rebound momentum will continue.

Today, Hong Kong’s trade balance is scheduled for 17:30 European time; U.S. durable goods orders at 21:30 U.S. time; pending home sales at 23:00 U.S. time; the Dallas Fed Manufacturing Activity Index at 23:30 U.S. time; the U.S. 2-year Treasury auction at 24:30 U.S. time;at 2:00 a.m., the U.S. 5-year Treasury auction, and at 2:30 a.m., remarks by ECB President Lagarde. We will be closely monitoring the U.S. short-term Treasury auctions during U.S. trading hours.