EUR/USD rebounds as US Treasury yields pull back
The EUR/USD pair is trading around 1.1632 after hitting an intraday low near 1.1582.
The Euro draws support from the latest Eurozone inflation data, which strengthened expectations that the European Central Bank could raise interest rates sooner than previously anticipated.
Data released showed inflation remained above the ECB’s 2% target for a second consecutive month, with the Harmonized Index of Consumer Prices rising to 3.0% YoY in April.
Markets are currently pricing in an 86% probability of a 25-basis-point ECB rate hike to 2.25% at the June 11 meeting.