Euro Sinks as US Bond Yields Surge

The EUR/USD has fallen to its lowest level since July 28 at 1.1380, extending its losses to seven of the past nine sessions.

The eurozone's strong data this week hasn't been enough to hold up the currency as U.S. bond yields continue to surge.

The Fed's target range sits at 3.75% to 4.00%, while the ECB's deposit rate stands at 2.50%, creating a gap of 125 to 150 basis points in favor of the dollar.

Market pricing now tilts towards the Fed doing more, with a 75.3% probability of an October hike and a 58.6% chance of another in December.