The euro was trading around 1.1380 on Thursday, close to its lowest level in two months, after falling nearly 2% in less than a fortnight. Pressure came from firmer US data, rising Treasury yields and a rebound in crude. Preliminary US S&P PMI readings showed business activity expanding at its fastest pace in more than five years, with jobs and wages rising quickly as input prices jumped alongside higher energy costs.<\/p>\n\n
Markets also digested signals of further Federal Reserve tightening, with policy framed around returning inflation to 2%. A poorly received five-year US Treasury auction pushed yields higher, and the benchmark 10-year rate moved above 5% to 5.135%, the highest level in 19 years, supporting the dollar. <\/p>\n\n
Oil added another headwind: prices rose about 5% from Tuesday\u2019s lows, with Brent at $98.50 and nearing $100, a mix that can weigh on Eurozone growth while complicating the inflation outlook. The Fed holds eight policy meetings a year via the FOMC, which comprises 12 officials, and can deploy QE or QT to influence financial conditions and the dollar.<\/p>\n\n\n\n