EUR/USD rises above 1.14 as greenback weakens amid falling T-bond yields

• The 10-year T-bond yields extend slide in the early NA session.
• US Dollar Index continues to stay below 97.
• Coming up: Consumer confidence and house price index data from the U.S.

Following a slump toward the 1.1350 area, the EUR/USD pair gained traction in the early NA session and rose above the 1.14 mark as the falling T-bond yields brought a fresh wave of USD-selling. As of writing, the pair was trading at 1.1402, adding 0.4% on a daily basis.

Earlier today, in its monthly bulletin the ECB noted that the economic expansion was ongoing in the euro area but downside risks were increasing while reiterating that significant monetary policy stimulus was still needed. Nevertheless, markets largely ignored the ECB’s publication and remained focus on the U.S. Treasury bond yields and the greenback’s performance against its rivals.

After gaining more than 2% yesterday, the 10-year T-bond yield switched its direction today and was last seen losing 1.5% on the day. Pressured by this market action, the US Dollar Index, which recovered toward the 97 mark earlier in the day, continued to push lower and was last seen down 0.3% on the day at 96.72. The only data from the U.S. so far showed that weekly jobless claims decreased to 216K in the week ending December 21 from 217K.

Later in the session, the CB’s consumer confidence index and the FHFA’s housing price index will be looked upon for fresh impetus.

Technical levels to consider