- Rise in Treasury yields propels the dollar.
- Stocks on Wall Street lose steam in the run-up to the open.
The EUR / USD broke lower and fell to 1.2122 rapidly as various legs of the Treasury yield curve hit new highs in months. The rise in the dollar was widespread.
The 10-year rate on US bonds reached 1.42% driven by the dollar on the market. The dollar index (DXY) climbed to 90.32, reaching a two-day high.
The advance in yields comes despite the statements of Tuesday by Jerome Powell, the Fed chairman. Today he will also appear before a congressional committee to present on monetary policy and the economy.
On Wall Street, rising yields sent futures down moderately. In metals, both gold and silver lost ground. The rise in the dollar also occurred against emerging market currencies. The recent advance was not yet strong enough for the greenback to erase all losses.
EUR / USD technical outlook weakens
From a technical point of view, the short-term outlook for EUR / USD looks somewhat weak ahead. The pullback below 1.2150 put the price below the 20 mean on the 20 chart in four hours. A return above would change the tone.
In case of extending the decline, supports can be seen at 1.2110 and 1.2080. EUR / USD still unable to assert above 1.2150. A daily close clearly above would point to more gains.
Technical levels
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
