EUR/USD falls Fed’s pivot speculations

The EUR/USD pair falls for the second straight day, as sellers are eyeing 1.0800. US New York Empire State Manufacturing Index climbed for the first time in five months.

The pair losses traction on technical reasons and on a stronger US Dollar (USD, as speculations that the US Federal Reserve (Fed) would hike rates in May, gains adepts. US Treasury bond yields rose; consequently, bonds dropped, a tailwind for the buck. At the time of writing, the EUR/USD is trading at 1.0911 after hitting a YTD high at 1.1075.

Growing adepts for a US central bank 25 bps rate hike boosted the US dollar. Wall Street trades with a risk-off-tilted mood.

The economic calendar in the United States and the Eurozone is light, with the main driver of EUR/USD’s price action being the US 2-year Treasury bond yield. The US 2-year bond yield is gaining almost 10 bps, sitting at 4.194%, while odds for a 25 bps rate hike by the Fed are seen at 84.7%, higher than last Friday’s 78%.