EUR/USD retraces below 1.1900 ahead of US CPI data
|- EUR/USD erases earlier gains, falls below the 1.1900 mark.
- Rising US Treasury yields lift the US dollar.
- Investors await US CPI data for trading insight.
The EUR/USD pair edged lower in the early European session. The pair peaked at 1.1917 amid a resistance confluence. However, it lacked the strength to hold onto the gains. The renewed
strength in the US dollar sponsored the downside momentum in the pair.
At the time of writing, EUR/USD is trading at 1.1886, down 0.19%.
The faster economic recovery in the US continued to bolster the performance of the US dollar against the majors. A sudden uptick in the US Treasury yields provided an additional boost to the greenback. The 10-year yields rose to a fresh intraday high of 1.69% from the lows of
1.66%. The US dollar index (DXY) was last seen trading at 92.29, with gains of 0.16%.
On the other hand, the Eurozone is struggling with dwindling economic prospects on the backdrop of rising coronavirus cases and a lagging vaccination drive. The growth differentials in the US and the EU weighed upon the shared currency.
As for now in the wake of the light EU economic calendar, the focus now shifts to the release of the US CPI data and rising bonds yield to take clues about fresh trading opportunities.
EUR/USD technical levels to watch
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