The post EUR/USD slips back below 1.1100 as Treasury yields spark US Dollar reversal appeared on BitcoinEthereumNews.com.

The EUR/USD touched 1.1140, a 21-week high before risk-off flows extended a pullback. The Euro is now into the red on Thursday as risk appetite sees a late reversal. US 7-year Treasuries saw yields tick higher, sparking a retreat into the Greenback. The EUR/USD is seeing some rough chop on Thursday as holiday-thinned markets churn rounding the corner into the last trading day of 2023.  The Euro (EUR) briefly rose to a 21-week high of 1.1140 early Thursday as broader markets sell off the US Dollar (USD) in anticipation of rate cuts from the Federal Reserve (Fed), but overheated market expectations of a structural pivot from the Fed have run well ahead of the present day, and an uptick in 7-year US Treasuries has sparked a pullback into the safe haven USD, pushing riskier assets like the Euro back into the red during 2023’s second-last trading day. US Initial Jobless Claims for the week ended December 22 also ticked higher, showing 218K new jobless benefits seekers versus the previous week’s 206K (revised from 205K). US Pending Home Sales in November also flubbed market expectations, coming in flat at 0.0% and missing the market’s forecast 1.0% rebound from October’s -1.2% decline (revised upwards from -1.5%).  US data misses fuel risk rally, rising Treasury yields end it Data misses from the US initially sparked a risk appetite run as softening economic indicators from the US increases the odds of pushing the Fed into a rate-cutting cycle sooner rather than later. However, a misfire in a US 7-year Treasury auction is watering down risk appetite ahead of the Thursday closing bell. US 7-year Treasuries hit a high yield of 3.859% in a $40 billion note auction on Thursday afternoon, rising from the previous yield of 3.857%, and runaway rate cut expectations are crashing…

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Filed under: News - @ December 29, 2023 1:26 am