The currency pair consolidates below 1.1700 as US bond yields stabilize and geopolitical risks support the dollar.
The EUR/USD pair consolidates near its highest level since late May, struggling to break above 1.1700 as traders await fresh catalysts. The US dollar regained footing after a three-month low in bond yields, supported by the Treasury’s plan to increase longer-dated debt purchases starting September.
Federal Reserve minutes from the July meeting signaled potential rate hikes unless inflation cools further, reinforcing expectations for at least one increase in 2026. Geopolitical tensions, including US threats of sanctions on Iran and deadlock over the Strait of Hormuz, added to the dollar’s safe-haven appeal.
Oil prices remain elevated, sustaining inflation concerns and keeping the Fed’s hawkish stance in focus. Market participants monitor developments for signs of a sustained breakout in the currency pair.