March 22th. European session

In trading in Europe, major currencies are trading in positive territory, with the exception of the British. The Briton was also painted green, but dyed red after Johnson's statements. British Prime Minister Boris Johnson said on Monday that they expect to soon feel the effects of the third wave of coronavirus in Europe.

The leader of growth was the Swiss franc (+ 0.34%). The demand for it increased after the publication of the annual report of the Bank of Switzerland. It says that Swiss National Bank's foreign exchange interventions rose to CHF 110 billion in 2020, up from CHF 13.2 billion in 2019. The size of the balance sheet is a direct consequence of monetary policy. Currency intervention has nothing to do with currency manipulation.

Buying the franc, someone apparently decided to check the Central Bank, what levels it protects by interventions. Until 2015, the regulator defended the level of 1.20 in the EUR/CHF pair for five years.

At the latest quotes, the yield on US Treasury bonds rose sharply to 1.70%. Major currencies immediately turned down. Market participants are ready to buy risky assets, but they are stopped by the sale of American bonds. Due to the increase in crosses, the euro is doing better than the Briton. If the yield does not go higher, the dollar's downward correction will continue.

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