EUR/USD Slips as US Yields and Fed Comments Counter Weakened Dollar

The EUR/USD pair declined modestly to 1.154 on August 11, 2026, as US Treasury yields rebounded and Federal Reserve comments remained hawkish.

This decline came after a brief rally fueled by the weak July payrolls report in the US, which showed a loss of 23,000 jobs instead of the expected gain of 80,000. The surprising data, combined with downward revisions to May and June job numbers, dampened expectations for further Federal Reserve rate hikes and pressured US Treasury yields lower.

However, a rebound in US 10-year Treasury yields to 4.735% on August 11, the highest since late July, countered the earlier decline in yields and supported the dollar. The surge in Brent crude prices to nearly $90 per barrel also added to inflation concerns and weighed on the euro.

Despite positive Eurozone economic data, including a 0.4% quarter-on-quarter GDP growth in Q2 and a rising July composite PMI, analysts at Rabobank caution that the recent EUR/USD strength is largely driven by dollar weakness rather than robust Eurozone fundamentals.