The dollar/euro remained stable due to various factors.

The euro may strengthen if the market increases expectations of a rise in interest rates by the European Central Bank (ECB) at its next meeting, which will depend on the PMI indices of the United States and the Eurozone, which will be announced soon.

The yield on Eurozone government bonds adjusted upwards at the opening of the market today, while investors are keeping a close eye on the future interest rate hike by the ECB, as the market has adjusted to an expected interest rate of up to 3.75%.

The 10-year German government bond yield rose by 0.02% to 2.453%, which is the highest level since mid-March, just a few days after the banking sector's status worries prompted investors to buy government bonds.

The ECB's short-term euro interest rate futures contract, which expires in November 2023, is at 3.7%, indicating that the market expects deposit interest rates to reach a peak of 3.8%, which is likely to be achieved through interest rate hikes of 0.25% three times.

The dollar has strengthened in the recent past and rebounded from its one-year low last week, after major banks announced profits in some of their Wall Street branches, reducing concerns about this sector. This has led to expectations that the Federal Reserve may raise interest rates again.

With rapidly decreasing inflation rates and policymakers at the Fed expressing concerns about weakness in the banking sector, there is some speculation that there may be a slight recession this year. Investors have begun to bet on a temporary halt to the Fed's rate hikes in May.

However, last Friday we saw strong quarterly results from JPMorgan Chase, Citigroup, and Wells Fargo that eased concerns about the banking crisis that occurred last month. There are still expectations of continued interest rate hikes in the future.

In addition, Federal Reserve Chair Christopher Waller has called for more stringent monetary policies to reduce persistent high inflation and begin to intervene in goods and services. Overall, the economy still shows signs that interest rates may continue to rise.

Waller said last Friday that "Given that financial conditions are not significantly stressed, the labor market remains strong and tight, and inflation rates are much higher than target, monetary policy needs to be more stringent to eliminate inflation as soon as possible."

Technical analysis data (5H)