EUR/USD looks to regain 1.1200 as US Treasury yields sell-off intensifies
- Fed rate cut triggers risk-off, 10-year Treasury yields hit record lows.
- USD remains weaker amid rising coronavirus deaths in the US.
- Focus on likely ECB rate cut and virus updates for fresh moves.
Having found buyers near 1.1150 region EUR/USD is heading back towards the two-month high of 1.1212, as the wipeout in the US Treasury yields seems to be boding well for the euro.
The US benchmark 10-year Treasury yields hit a record low below 1.0%, as markets remain wary whether the US Federal Reserve (Fed) unexpected 50bps rate cut would be effective enough to combat the negative impact of the coronavirus on the economy.
Markets ran for cover in the US bonds, thereby, hammering the US rates by over 15% so far. The crash keeps the US dollar broadly under pressure, with the US dollar index meandering near two-month lows of 97.00.
With the rising coronavirus deaths in the US and investors assessing the impact of the massive rate cut by the Fed, the sentiment is likely to remain sour and poses further upside risks to the EUR/USD pair going forward.
Meanwhile, the Eurozone Preliminary CPI data came in line with estimates but failed to have any impact on the shared currency, as the major remains at the mercy of the risk trends amid looming coronavirus risks.
EUR/USD technical levels to consider