EUR/USD a casualty of rising treasury yields

US dollar is solidly bid in Asia on the back of a rise in treasury yields, thus EUR/USD is trading on the backfoot around 1.1130 levels.

Funding currenecies under pressure

EUR and other funding currencies are feeling the heat of the rise in treasury yields and rise in long duration bond yields across the globe on account of increased odds of fiscal spending, rising oil prices and central bank exhaustion. At the time of writing, the 10-yr treasury yield and 2-yr yield was up at least three basis points each.

The data docket is thin with just German zew survey indices due for release. In US, we have NFIB small business optimism number dur for release and short duration bill auction.

EUR/USD Technical Levels

A break below 1.11 handle could yield a drop to 1.1060 (rising trend line on daily). A violation there would open up downside to 1.10 handle. On the higher side, resistance at 1.1138 (Oct 4 low) would expose 1.1182 (Sep 28 low) and 1.12 (zero figure).