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EUR/USD extends rebound toward 1.1600 as US yields steady

The 10-year US Treasury yield fell from 4.75% to 4.69% after a recent spike, while Danske Research said markets may be pricing too many ECB rate hikes.

Reported · Written up by our desk · Major Pairs

EUR/USD extended its rebound toward 1.1600, helped by stabilizing US Treasury yields, according to a note from Danske Research Team carried by FXStreet.

Danske said European yields remained elevated, but US yields steadied after the recent move, with the 10-year UST yield dropping from an intraday high of 4.75% to 4.69%.

The research team argued that markets are pricing too many ECB rate hikes, leaving room for European rates to move lower, with the upcoming FOMC Minutes expected to be the main catalyst for further direction.

Danske also pointed to upside surprises in Germany’s ZEW economic sentiment for August, including expectations rising to 34.2, while the current-situation assessment improved to -61.1, and noted the FOMC Minutes from the July meeting are released this evening.

Latest closeEUR/USD 1.157 ▲0.4%

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