Forex Today: Yields return to the spotlight

What you need to know on Thursday, March 4:

The greenback managed to recover some ground against most major rivals, once again advancing alongside government bond yields. Mid-European morning, headlines showed that the European Central Bank reportedly sees no need for drastic action to curb recent developments in the bond market, according to officials familiar with discussions. Yields rallied afterwards, with that on the US 10-year Treasury note nearing 1.50%. The EUR/USD pair finished the day around 1.2060

The GBP/USD settled around 1.3960. UK Chancellor Rishi Sunak presented the 2021 budget, which included further support for companies and citizens and a plan to increase taxes in the near future to bankroll the pandemic-related spending. The furlough scheme will be extended until the end of September. The government expects the economy to return to pre-coronavirus GDP levels by mid-2022.

Commodity-linked currencies finished the day little changed against the greenback, amid mixed hints. Crude oil prices surged, with WTI settling above $61.00 a barrel, despite the EIA reporting a huge increase in stockpiles of 21.5 million in the week ended February 26.

Gold, on the other hand, plummeted to $1,701.85 a troy ounce, bouncing towards the 1,716 level by the end of the day Wall Street opened lower, but got to bounce from intraday lows, ending the day with losses.

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