The currency pair falls to a two-month low as risk aversion and higher US yields bolster the US Dollar ahead of key economic data.
EUR/USD trades near 1.1596, its lowest level in two months, as the US Dollar strengthens amid risk-off sentiment and rising Treasury yields. The US Dollar Index (DXY) hovers near a six-week high at 99.43, supported by geopolitical tensions and expectations of prolonged Federal Reserve policy tightening.
S&P 500 futures extend losses, trading near 7,340, reflecting investor caution over Middle East instability and delayed Fed rate cuts. The 10-year US Treasury yield hits a fresh 16-month high at 4.91%, as markets price out near-term easing. Technical indicators show EUR/USD below its 20-day EMA at 1.1684, signaling further downside potential.
Investors await the FOMC April meeting minutes and May’s preliminary Eurozone and US private sector PMI data for further direction. The pair’s bearish momentum persists as the USD benefits from safe-haven demand and higher yields.