- EUR/USD falls as the dollar rises with Treasury Yields.
- The Eurozone Industrial Production and US CPI awaited.
- Record US bond auction ahead.
EUR/USD was trading in the red at 1.1722, falling by 0.15 Percent, dragged down by the strength in the US dollar. The greenback moved up in tandem with the rise in the US bond yields ahead of the Wednesday’s record 38 billion dollars bond auction.
The pair had posted a 26-month high of 1.1916 on Aug. 6.
The yields rise when the bond prices fall; the six basis points rise to 0.66 Percent yield on Tuesday was the largest single-day gain in two months, and in the process, helped the dollar to find buyers.
The yield is near 0.66 Percent currently and might continue to rise ahead of the auction. Bond traders usually sell when bond supply is expected to increase, pushing the yield up.
The general optimism in finding a coronavirus vaccine, after the recent announcement from Russia, along with the sense of broader economic recovery can help the dollar and the yields to higher levels. The global optimism about recovery was triggered by the deflation-easing signs from China’s producer price index, released on Monday.
The Eurozone Industrial Production for June and the US Consumer Price Index for July are the notable events for today.
USD Index Today - last 90 days
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