Home›Forex›Major Pairs›Euro slips below 1.1700 as US yields boost the dollar

Euro slips below 1.1700 as US yields boost the dollar

The euro could not hold gains above 1.1700, as the rise in US Treasury yields followed a plan to increase long-dated bond buybacks to $4 billion from $2 billion.

Reported · Written up by our desk · Major Pairs

The euro remained steady below 1.1700 after failing to sustain gains above the level, even as EUR/USD earlier marked a three-month high. US Dollar strength pushed the pair back to roughly unchanged levels from Thursday’s open, according to FXStreet.

The greenback’s recovery was linked to higher US Treasury yields, with the US Treasury announcing it would raise buybacks of long-dated bonds from $2 billion to $4 billion. The US Dollar Index, which tracks the dollar versus a basket of six peers, rose 0.10% to 98.84.

Support for the dollar also came from data and Fed messaging, FXStreet said. Jobless claims for the week ending August 15 came in at 206K, below forecasts for 210K and the prior 212K print, while Fed officials Alberto Musalem and Mary Daly offered differing views on policy timing and inflation concerns.

In the Eurozone, Germany’s producer prices strengthened, with July PPI rising to 1.1% month over month and 3% year over year, above forecasts, FXStreet reported. Attention then shifts to upcoming Flash PMIs across France, Germany, the Eurozone, and the United States.

Latest closeEUR/USD 1.157 ▲0.4%|Dollar index 99.64 ▼0.3%

More like this

Sources