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EUR/USD sinks to mid-2025 lows as US dollar rally gains traction
The move is tied to higher long-dated US Treasury yields and renewed focus on upcoming US inflation data, including PCE.
EUR/USD has fallen to its lowest level since mid-2025 as the US dollar holds broad-based momentum, FXStreet reports.
The outlet attributes the dollar strength to elevated long-dated US Treasury yields and shifting market expectations for Federal Reserve policy, with traders watching upcoming US data to assess the odds of an October rate hike.
FXStreet also cites differing views from institutional strategists at Commerzbank and ING on whether the dollar rally can continue, with the debate centered on whether current valuations are overstretched versus rate differentials or instead supported by bond-market dynamics.
According to Thu Lan Nguyen at Commerzbank, the decline reflects elevated pricing for Fed tightening versus the ECB, but she warned that if the Fed does not signal further increases, the greenback could see a moderate pullback.
Latest closeEUR/USD 1.137 ▼0.1%