Breaking: EUR/USD tanks below 1.0500, as bears eye YTD lows
- EUR/USD plummets to tenth-month lows, with sellers eyeing a YTD low 1.0482.
- Risk aversion spurred by the Fed’s hawkish rhetoric and a US government shutdown lurking boosted the safe-haven status of the Greenback.
The EUR/USD is tanking below 1.0500 after hitting a daily high of 1.0574 as US Treasury bond yields continued to climb while market sentiment deteriorated, as Wall Street registers losses between 0.45% and 0.60%.
Fears of a potential government shutdown in the United States (US) in four days would likely delay the release of critical economic data needed in difficult times of high inflation and economic uncertainty. That, alongside expectations of further tightening by the US Federal Reserve, sparked a rise in US Treasury bond yields to yearly highs, with the 10-year benchmark note about to pierce the 4.60% mark. As aforementioned, US equities continued to drop further.
A rise in US Durable Goods Orders showed a robust economy in the US and gave a leg-up to the US Dollar, as demonstrated by the US Dollar Index (DXY), with buyers eyeing the next resistance area at 107.19, the November 30, 2022, high.
Bearish sentiment in the Euro extended due to Consumer confidence in Germany, deteriorating further despite European Central Bank (ECB) members’ hawkish rhetoric, which failed to propel the EUR/USD higher.
EUR/USD Price Action – Daily chart
EUR/USD Key Technical Levels
Author
FXStreet Team
FXStreet
Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.
