Euro Slips Amid Hawkish Fed Signals and US-Iran Talks Stalemate

The EUR/USD pair is trading with mild losses near 1.1375 during early Asian trading hours on Friday, as the US Dollar strengthens against the Euro amid hawkish signals from the Federal Reserve officials and lack of progress in US-Iran talks.

Traders are bracing for Fedspeak later on Friday, while the 30-year US Treasury bond yield reached a high of 5.501%, a level not seen since June 2004, and the US 10-year Treasury yield climbed to 5.223%, a level not reached since June 2007.

Markets are now pricing in nearly a 67.5% odds of an October benchmark rate hike, up from 55.4% a week earlier and 11% a month earlier, according to the CME FedWatch tool.