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EUR/USD rises above 1.16 as USD weakens on larger Treasury buybacks

FXStreet says the U.S. Treasury will at least double longer-dated nominal coupon liquidity support buybacks to $4 billion per operation starting September 9, weighing on the dollar.

Reported · Written up by our desk · Major Pairs

EUR/USD gathered bullish momentum and moved above 1.1600, its highest level since early June, as market participants stayed under heavy bearish pressure on the U.S. dollar, according to FXStreet.

The outlet attributed the USD weakness to a U.S. Treasury decision to increase the size of liquidity support buyback operations for longer-dated nominal coupon securities, moving the program from $2 billion to at least $4 billion per operation effective September 9.

FXStreet also noted UK inflation data that showed annual CPI rising to 2.9% in July, matching estimates, while core CPI climbed to 2.6% year over year versus 2.5% expected, as GBP/USD pushed toward a three-month peak near 1.3600.

Looking ahead, FXStreet said investors would scrutinize the FOMC Minutes for additional clues on the policy outlook.

Latest closeEUR/USD 1.157 ▲0.4%|GBP/USD 1.354 ▲0.3%

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