Euro Struggles as US Economy Outpaces Eurozone

The EUR/USD currency pair has been trading at around 1.14 after reaching its weakest level in nearly two months on Friday, September 25.

This move came as the US economy continues to grow faster than the eurozone's, with the Federal Reserve hiking interest rates more aggressively than the European Central Bank (ECB).

The 10-year Treasury-Bund spread stands at 161 basis points, indicating that the US yields are rising faster than those in Europe.

This trend has been consistent throughout September, with every leg lower in EUR/USD corresponding to a jump in US yields or oil prices.