EUR/USD Crashes to New Lows Amid Rising US Dollar and Oil Prices
The EUR/USD exchange rate continued its downward trend as the US dollar, crude oil, and bond yields rallied ahead of the Federal Reserve's interest rate decision. The pair slipped to 1.1540, its lowest level since August 14 this year, after dropping by 1.50% from its highest point in September.
The strong rally in the US dollar index, which rose to 99.63, its highest level since September 2nd, and crude oil prices, with Brent nearing $110 and WTI at $106, pushed investors towards the safety of the greenback. US bond yields also continued rising, with the ten-year crossing the important milestone of 5% and the 30-year hitting 5.367%.
The EUR/USD pair is reacting to the rising European bond yields as well, with the German ten-year yield reaching its highest level in years at 3.55%. The technical analysis suggests that the pair will likely continue falling, with a next key target of 1.1450 if this trend holds.