EUR/USD Surges on Oil Prices and Hawkish ECB Bets

The EUR/USD pair has edged higher to around 1.1670 in Asian trading on Tuesday, supported by rising oil prices and escalating Middle East tensions that are driving Eurozone inflation concerns.

Oil prices have climbed near $80 a barrel, while longer-dated Eurozone sovereign yields are holding near multi-decade highs, tracking US moves as Washington's deficit spending and fears of Federal Reserve complacency on persistent inflation keep Treasury yields firm.

Markets widely anticipate a 25-basis-point rate rise in September following June's tightening, driven by the hawkish European Central Bank bets.

The dollar has stayed under pressure after the US Treasury moved to double buybacks of longer-dated bonds; reports say Treasury Secretary Scott Bessent could deploy nearly $1 trillion from the Treasury General Account to fund the operations.