The Euro hits yearly lows against the US Dollar, falling below 1.1300 as surging US yields and high oil prices weigh on sentiment.
The EURUSD pair has hit yearly lows for four consecutive days, falling below the 1.1300 threshold for the first time since May 2025. This bearish trend is driven by the confluence of rising US yields and the economic burden of high oil prices on the Eurozone.
The pair is in a strong bearish trend, having reached its lowest level since May 2025.
Elevated global oil prices are identified as a significant macroeconomic headwind for the Eurozone, further weakening the Euro against the US Dollar. As a net energy importer, the Eurozone's currency is negatively correlated with sustained high energy costs.
The Eurozone is a major energy importer; high oil prices increase the cost of imports, worsening the trade balance and weakening the currency.
The US 10-year Treasury yield is acting as a primary catalyst for currency market volatility, as rising yields increase the attractiveness of dollar-denominated assets. This yield environment is directly pressuring the Euro, contributing to its sustained decline against the USD.
Higher US yields typically strengthen the USD by offering better returns for investors, which puts downward pressure on the Euro.
The Euro extended its decline against the US Dollar for the fourth consecutive session, breaching the 1.1300 support level for the first time since May 2025. Rising US 10-Year Treasury yields and elevated crude oil prices continue to exert downward pressure on the currency pair.
The Euro is declining due to a combination of rising US 10-Year Treasury yields and high crude oil prices, which have strengthened the US Dollar.