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EUR/USD rises for third straight day near 1.1680
The euro's strength is tempered by renewed US yield gains after the Treasury's long-end bond buyback effort.
EUR/USD held gains for a third consecutive day, trading around 1.1680 in Asian hours Friday, as market focus stays on incoming Eurozone data for directional cues, including Germany and broader HCOB Purchasing Managers' Index readings. FXStreet links the euro's advance to still-firm regional fundamentals, while noting inflation pressure from soaring European natural gas prices tied to supply shortages in the Middle East, a dynamic that can keep the ECB on a hawkish path. Support for that outlook also comes from German July producer prices, which rose 3.0% year-on-year, beating expectations of 2.7% and marking the fastest annual increase since April 2023. The data also showed a 1.1% monthly rebound, reinforcing the view that inflation momentum remains. However, FXStreet says upside for EUR/USD may be capped as the US dollar regains strength, supported by a resumption of higher Treasury yields. The outlet also points to Federal Reserve Governor Musalem's comments, describing them as broadly in line with the baseline but with a notably hawkish tilt on inflation risks, including the view that inflation at 2.5% to 3% is still too high and that supply shocks, such as a Super El Niño, could complicate the outlook.
Latest closeNat gas $2.715 ▼0.4%|EUR/USD 1.157 ▲0.4%