EUR/USD trading has gotten off to a steady start in Europe, presently at 1.3825. The market is trying to gather it’s thoughts after the sharp sell-off seen in late North American trading Wednesday.
Soaring U.S. bond yields (the yield on 10-year U.S. treasuries up 19 bps yesterday) has led to a growing concern that higher borrowing costs could choke off U.S. economic recovery before its begun. This concern has put a fair dent in risk appetite and underinned EUR/USD.
For today support comes at 1.3795/00, resistance up at 1.3850/55.
