EUR/USD continues its run lower amid increasing Fed hike bets, surging Treasury yields

EUR/USD extends the consolidation amid widely expected ECB hikes, US-Iran stalemate

Lead — The EUR/USD pair remains in a consolidation phase as traders await clearer signals from both the ECB and the Federal Reserve. Per the full note from Giuseppe Dellamotta, the US dollar has strengthened slightly amid geopolitical tensions and higher-than-expected inflation data, while the euro faces pressure despite anticipated ECB rate hikes. The market is pricing in an 87% probability of a June rate hike from the ECB, but the desk sees limited room for the euro to rally based solely on interest rate expectations. Upcoming US Retail Sales and Jobless Claims data will be crucial in shaping market sentiment.

USD/JPY keeps erasing intervention losses as macro backdrop remains skewed to the upside

USD/JPY remains stuck in a tight range amid US-Iran deal optimism and hawkish Fed risk

Indian Rupee sinks into yet another record low on surging Treasury yields, oil prices