EUR/USD flows: Yields coming off; follow through taken back
Yields falling off though seen quite symmetrically so far
EUR/USD takes an o/s breather, going back to the 1.1350 break
Yields coming off pretty steeply at present given the global backdrop with unwind trade making its way through to the bond market. While that very much applies to US -which is worth keeping in mind with respect to the Fed-repricing narrative shift - yield drops are currently pretty symmetrical (just if not more relevant to EZ pricing this year).
Worth noting the steep drop in new home sales – might hint at some influence from mortgage rates came through although housing data more generally has been mixed of late so this might be partly noise even if the trend has softened here.
EUR/USD more technically driven over the course of the day - follow through break lower from 1.1350 earlier that got oversold has made it back to the early day support levels.