Ella 
In Asia on Wednesday, the EUR/USD continued to fall to around 1.0840 as traders took a cautious stance ahead of the release of the Eurozone Economic Sentiment Index for February and the initial annualized GDP for the fourth quarter of the United States.
The market maintains risk aversion and the U.S. dollar index attempts to extend its gains, but low U.S. bond yields may put downward pressure on the dollar. As of press time, the U.S. dollar index rose to around 103.90, and the two-year U.S. Treasury yields and the 10-year U.S. Treasury yields were 4.68% and 4.29% respectively.
In December, the U.S. housing price index (monthly rate) increased by 0.1%, lower than the expected value of 0.3% and the previous value of 0.4%. In addition, U.S. durable goods orders recorded -6.1%, lower than the expected value of -4.5% and the previous value of -0.3%. The CME FedWatch tool shows the probability of a rate cut in March has dropped to 1.0%, compared with 21% and 49.8% for May and June respectively.
However, ECB President Christine Lagarde’s latest comments on Monday may bring some gains to the euro (EUR). Lagarde mentioned that although the inflation rate is steadily approaching the central bank’s target, the European Central Bank is committed to maintaining existing policy measures unchanged for the foreseeable future.
