EUR/USD Slips Below Key Support as US Bond Yields Soar
The EUR/USD pair has dropped to its lowest level since August 13 at 1.1524, following three consecutive days of decline. This sell-off is attributed to rising US bond yields and crude oil prices.
The ten-year bond yield has jumped for eight consecutive days, reaching its highest level since 2007. The average gasoline price has risen to $4.31, while diesel prices have increased to $6.23.
Data released last week showed that headline consumer inflation rose by 3.4% and core consumer inflation rose by 2.4%. These metrics indicate that inflation remains above the 2% level for over five years.
The EUR/USD pair is expected to react to the upcoming Federal Reserve interest rate decision, with a rate hike predicted at over 80% based on the CME Fed Futures tool.