Euro Tumbles to 2-Month Low Amid Strong US Data and Soaring Oil Prices
The Euro has been battered by strong US macroeconomic data and higher oil prices, trading around 1.1380, near its lowest level in two months.
A strong US Purchasing Managers' Index (PMI) report on Wednesday showed business activity grew at its strongest pace in over five years, with jobs and wages rising fast and input prices surging due to higher energy costs.
Fed Governor Michael Barr confirmed that 'further rate hikes are likely needed to ensure timely return to the 2% inflation'.
The yield for the benchmark 10-year note crossed above the critical 5% level, reaching its highest levels in 19 years at 5.135%, increasing support for the US Dollar.
Oil prices have also appreciated about 5% from Tuesday's lows, with Brent Oil trading at $98.50, adding pressure on the Eurozone's economic growth and inflation.