EUR/USD Trades Right Above 1.1700 at a Three-Month High

The euro trades right above 1.1700 against the dollar on Thursday after surging about 1.13% from Wednesday’s lows. That is the FXStreet stamp. The same headline calls it a three-month high. The UOB 1.1725 bank note is already live. Friday’s Asian session is the other live euro tape.

The driver is the Treasury long-end buyback already live. FXStreet writes the Treasury will double liquidity-support buybacks on longer-dated securities to at least $4 billion per operation from $2 billion, from 9 September.

MUFG: dollar vulnerability grows

MUFG, as FXStreet reprints it, says the buyback plus the recent FIMA comment to Japan after intervention risks proving “counter-productive” for the dollar. It “could lead to reduced appetite for either holding US assets (UST bond sales) or reduced appetite for exposure to the US dollar (dollar selling) or both.” Even if the plan contains yields, MUFG writes, “the US dollar now remains more vulnerable to the downside on the fact that yields are potentially lower.”

The same page says the Treasury announcement shadowed the Fed’s latest minutes, which it calls hawkishly leaning, and that those minutes failed to stem the dollar sell-off. UOB’s 24-hour range had capped the pair at 1.1700. This stamp is through that line.

Live euro is on prices. The next stamps sit on the economic calendar.

Informational only. Not trading advice, signals, or a guarantee of any market outcome.