- Wall Street cut losses, DXY nears daily lows.
- Treasury yields moved away from all-time highs, after hitting weekly highs.
- EUR/USD remains sideways with a bullish bias.
The pair EUR/USD has rebounded to 1.0611, hitting the lowest level since last Thursday, and then rebounded sharply higher, nearing daily highs as stock prices rallied on Wall Street.
Improved risk sentiment sent the US dollar lower overall. The DXY is around 104.00 points, down 0.25% on the day. On Wall Street, the Dow Jones rose 0.28% and the Nasdaq fell 0.75% (a few minutes ago it lost more than 1%).
Rising Yields
US and European bond yields rise on Tuesday, far from their highs. The US one-year bond yield peaked at 3.83%, the highest in a month. The German 10-year matched the 2022 high at 2.53%. The divergence between both bonds is at levels not seen since October 2020 and is supporting the euro.
Klaas Knot, a member of the European Central Bank’s Governing Council, said on Tuesday that he believes the central bank has just passed the middle of its tightening cycle and that it needs to “keep playing for the long term” to rein in high inflation. .
Back at 1.0660/70
The EUR/USD pair has broken above 1.0640 (20-hour SMA) again and is approaching the 1.0660/70 resistance zone. A break to the upside would clear the way for a test of 1.0700. The next level is the recent high at 1.0735/40. A consolidation away from 1.0620 should reinforce the uptrend.
On the other hand, a further failure around 1.0670 would suggest that the consolidation range with support at 1.0580 remains in place.
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.
