The March Euro currency futures recorded their fourth consecutive session decline, continuing a broader downward trend seen in 14 of the last 16 sessions. Since late December, the currency has dropped approximately 1.73%, moving from the mid-1.18 level to the lower 1.16 range. A primary driver for this movement is the widening yield differential between the U.S. and the European Union.
While German 10-Year bond yields rose slightly, they were outpaced by U.S. 10-Year yields, which climbed five basis points at the session high. Additionally, German CPI data was released in line with expectations at 1.8%. As Germany is the Eurozone’s largest economy, these inflation figures and yield spreads remain critical indicators for the currency's trajectory relative to the U.S. dollar.