- EUR/USD plunges to 10-month lows and sellers target yearly low of 1.0482.
- Risk aversion fueled by the Fed’s hawkish rhetoric and a looming US government shutdown boosted the USD’s safe haven status.
The pair EUR/USD sinks below 1.0500 after hitting a daily high of 1.0574 as US Treasury yields continued to rise as market sentiment deteriorated as Wall Street posts losses of between 0.45% and 0.60%.
Fears of a possible United States (US) government shutdown in four days would likely delay the release of key economic data, needed in difficult times of high inflation and economic uncertainty. This, along with expectations of further tightening by the US Federal Reserve, caused US Treasury yields to rise to yearly highs, with the 10-year yield on the verge of to drill the 4.60% level. As already mentioned, US stocks continued to fall.
The increase in durable goods orders in the US highlighted the strength of the US economy and gave wings to the Dollar, as demonstrated by the Dollar Index (DXY), with buyers attentive to the next resistance zone at 107.19 , the maximum of November 30, 2022.
Sour sentiment in the Euro spread due to German consumer confidence data, deteriorating further despite hawkish rhetoric from members of the European Central Bank (ECB), which failed to boost EUR/USD higher.
EUR/USD Price Action – Daily Chart
EUR/USD Key Technical Levels
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
