EUR/USD Holds Below 1.15 Amid Rising European Yields

The EUR/USD currency pair consolidated below 1.15 on Friday as European yields rose amid increased French sovereign risk and higher energy prices.

Bund yields climbed, with the Bund 2Y rising 5-6 basis points to 3.28%, while the Bund 10Y increased by 5 basis points to 3.52%.

Danske Research Team notes that inflation expectations in the Euro area have stabilized around 3%, following a trend of declining expectations since May, which could be interpreted as hawkish by the ECB.

The upcoming preliminary September PMIs for major economies will be closely watched, particularly in the euro area, where strong growth has made it easier for the ECB to tighten monetary policy.