The dollar surged Thursday with the Dollar Index climbing 0.65 percent to 100.98, pushing EUR/USD down to 1.144 according to Deutsche Bank analysis. The greenback’s strength comes despite a slight pullback in US Treasury yields, with the 10-year dropping 3.4 basis points as bonds partially recovered from earlier Federal Reserve-driven selloffs.
Weekly jobless claims came in marginally above market expectations, though the data failed to derail dollar momentum. The euro continues facing pressure against its American counterpart as currency markets digest the diverging monetary policy outlook between the Federal Reserve and European Central Bank. Traders are closely monitoring Treasury movements as a key driver for near-term dollar direction.
The combination of resilient dollar demand and retreating yields suggests investors remain cautious about broader economic conditions while maintaining confidence in US assets relative to European alternatives.
FXnCO Insight
EUR/USD traders should watch the 1.144 level closely as a break lower could accelerate euro weakness, particularly if Treasury yields stabilize or reverse their recent decline.
Source: FXStreet