Dollar Rises as Bond Yields Surge Amid Energy Price Fears

The EUR/USD pair is experiencing downward pressure due to rising bond yields and energy prices, which are also affecting global stock markets.

The US dollar has been boosted by increasing confidence that the Federal Reserve will raise interest rates on Wednesday, with market pricing indicating a nearly certain 25 basis point hike.

Bond yields have surged, with the 10-year Treasury yield surpassing 5% for the first time since 2007, while Brent crude oil prices have reached around $107 per barrel, exacerbating inflation concerns and making rapid monetary easing less likely.

The euro has been further weighed down by German sentiment surveys and a closely-watched survey showing deteriorated bond-market conditions.