Forex
Euro Struggles as US Yields Reach 20-Year High
The Euro is under pressure as the U.S. Dollar strengthens against it, driven by rising U.S. Treasury yields and a surge in the Dollar Index.
On Thursday, EUR/USD traded near 1.1310, down 0.16%, while the Dollar Index hovered close to its yearly high of 101.80. The pair remains under downside pressure as U.S. Treasury yields reached about 5.30%, their highest level in roughly twenty years.
Despite a stronger-than-expected German HICP figure, the Euro has not been able to capitalize on it due to the overall market narrative dominated by U.S. Dollar strength and higher U.S. yields.