Home›Forex›Major Pairs›Euro slides as Waller warning and Iran strikes boost t…

Euro slides as Waller warning and Iran strikes boost the US dollar

EUR/USD fell to about 1.1379 as risk aversion strengthened the dollar, while US 10-year yields rose 6 basis points to 4.624% amid renewed rate-hike expectations.

Reported · Written up by our desk · Major Pairs

The euro weakened at the start of the week as risk aversion pushed investors toward the US dollar, with EUR/USD down 0.31% to around 1.1379 after a session high near 1.1445, FXStreet reported. The dollar strength was tied to heightened Middle East tensions, including CENTCOM announcing a third consecutive night of strikes against Iran.

Hawkish remarks by Federal Reserve Governor Christopher Waller added to the upward pressure on US rates. FXStreet said Waller noted that a high core inflation reading could prompt immediate consideration of a rate hike, and that it was plausible inflation could return to the Fed’s 2% target without increasing rates, while also pointing to a labor market closer to the Fed’s maximum employment goal.

The yield move reflected growing expectations for tightening, with the US 10-year T-note surging 6 basis points to 4.624%, FXStreet reported. Money markets were described as pricing in nearly 42 basis points of Federal Reserve tightening, according to Prime Terminal data, while the US Dollar Index rose 0.32% to 101.28.

FXStreet also cited the market’s technical outlook, noting EUR/USD remained under clustered 50-, 100-, and 200-day moving averages near 1.1554 and was still within a downward parallel channel on the daily chart. The outlet said the pair was trading with a bearish near-term bias.

Latest closeEUR/USD 1.139 ▼0.4%|Dollar index 101.28 ▲0.3%

More like this

Sources