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EUR/USD holds near 1.1680 as traders weigh US policy and Iran sanctions

US Treasury Secretary Scott Bessent said the department will double long-end bond buybacks to $4 billion per operation to cap surging 30-year yields, a move that factors into USD sentiment.

Reported · Written up by our desk · Major Pairs

EUR/USD was steady around 1.1680 in early European trading on Monday, supported by technical structure but with gains likely tempered by overbought momentum, FXStreet said. The article points to US Treasury actions as a key driver for the dollar side of the pair. FXStreet cited remarks from US Treasury Secretary Scott Bessent that the department will double long-end bond buybacks to $4 billion per operation to help cap rising 30-year yields, alongside broader concerns about the US fiscal outlook and uncertainty over the Fed’s policy path.

FXStreet also said traders are looking ahead to potential details on US sanctions related to Iran, after Bessent threatened “the toughest sanctions in history.” It noted Iran’s foreign minister Abbas Araghchi dismissed a fresh round of US sanctions as a desperate ploy, and added that renewed US-Iran tensions could still shift flows toward the dollar as a safe haven.

Finally, FXStreet highlighted that attention is set to turn to a policy speech from Federal Reserve Chairman Kevin Warsh at Jackson Hole for clarity on the outlook for US interest rates. The outlet warned that if Warsh sounds more hawkish than expected, it could limit any further USD losses and inject volatility into EUR/USD.

Latest closeEUR/USD 1.157 ▲0.4%

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