Dollar Rebound Continues as Bond Yields and Oil Prices Weigh on Euro

The EUR/USD is struggling due to rising bond yields and energy prices, which have caused the dollar to rebound. The Federal Reserve's upcoming rate decision on Wednesday has investors positioning for a potentially more hawkish stance, leading to higher US Treasury yields.

Oil prices have surged, reaching around $107 a barrel, adding to inflation concerns and making it harder for monetary easing to occur. This has unnerved equity investors, providing further support for the dollar.

The euro and European stocks are being hit by oil prices and data, with German Bund yields climbing to a 15-year high. The pressure on European equities is becoming increasingly difficult to dismiss as a temporary bout of caution.