Falling Yields Shift the Setup: EUR/USD Lifted, USD/CAD Pressured
The U.S. 2-year Treasury yield has retreated to 4.889% after reaching new highs above its 50-day and 200-day EMAs.
This slight pullback in yields could have significant implications for currency markets, particularly for EUR/USD and USD/CAD.
Falling U.S. yields may give relief to non-U.S. dollar currencies, potentially lifting EUR/USD in the short term and putting pressure on USD/CAD.