Rising US bond yields near 16-year peaks cap dollar losses, stalling EUR/USD’s push past key technical resistance levels.
EUR/USD failed to sustain a break above 1.1600 in early trading, pressured by surging US Treasury yields. The 30-year yield reached 5.32%, its highest since 2007, while the 10-year yield neared 4.74%, reinforcing dollar strength amid elevated US-Iran tensions and Fed policy uncertainty.
Market focus remains on Jackson Hole next week, with September rate hike odds climbing to 35% from 29% earlier. Technical resistance at the 100-day moving average and the 1.1586 Fibonacci level further limited EUR/USD gains, despite a brief push above both.
USD/JPY movements may offer the next catalyst, but for now, buyers face challenges clearing key hurdles amid the yield-driven backdrop.