Dollar Soars as Strong US Data Outpaces Eurozone Growth

The EUR/USD exchange rate is experiencing pressure from stronger US economic data and rising Treasury yields. The dollar index has climbed to a two-month high, while the euro is heading for its third consecutive weekly decline.

The S&P Global Composite PMI rose to 58.4 in September, the highest level in over five years. This accelerated growth was accompanied by stronger price pressures and the fastest employment growth in four years.

The Eurozone's preliminary composite PMI also saw an improvement, rising to 53.1 in September from 52.0. However, despite this, the dollar maintains its advantage due to the US economy growing faster and having a higher interest-rate advantage.

Treasury yields have added another source of pressure on the euro, with the five-year yield moving above 5%. The long end of the U.S. yield curve has also climbed close to multi-year highs.