EUR/USD Forecast: Euro unlikely to stage a convincing rebound ahead of US events by eren_fxstreet EURUSD Euro USDollar
The number of daily coronavirus cases in the US and Europe both reached new all-time highs on Tuesday. The World Health Organization's senior emergencies officer Catherine Smallwood noted that a new variant was more likely to appear with Omicron spreading at an unprecedented pace. "Now, Omicron is lethal, it can cause death. Maybe a little bit less than Delta but who's to say what the next variant might throw out," Smallwood added.
The US T-bond yields' reaction to Wednesday's US events will be the key driver behind the dollar's market valuation. In case the benchmark 10-year US T-bond yield climbs above 1.7% on a hawkish Fed Initial static support is located at 1.1270. With a daily close below that level, EUR/USD could target 1.1240 on the downside before testing 1.1200 .
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