XE Market Analysis: Europe – May 16, 2018

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The dollar has been buoyed by rising U.S. Treasury yields. The U.S. 10-year T-note hit a seven-year high above 3.03% while Fed funds futures were, as of the PM session on Wall Street yesterday, fully pricing in at 25 bp tightening at the June 12th-13th FOMC while discounting about 80% odds for another quarter point hike by September. EUR-USD posted a five-month low at 1.1816 in the latest phase of dollar buying. USD-JPY saw a 13-week high at 110.45 during the New York PM session yesterday, since settling in the lower 110.00s.