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With the uptick in the US rates dragging its Eurozone counterparts higher, the common currency area is facing an undesirable tightening of financial conditions, according to Robin Brooks, Chief Economist at the Institute of International Finance (IIF). 

As such, EUR/USD is showing resilience in the face of the rising US bond yields and the widening of the US-Eurozone bond yield differentials in the USD-positive manner. 

The longer duration US bond yields have risen sharply over the past few weeks. Notably, the 30-year Treasury yield rose above 2% for the first time since February 2020. 

Even so, EUR/USD rose nearly 200 pips to 1.2144 in the past four trading days.