EUR/USD Exchange Rate
EUR/USD: 1.17735
The euro has strengthened against the US dollar, trading near its highest level since early 2024, supported by a softer DXY and stable Eurozone outlook.
10-Year Government Bond Yields
Region 10-Year Yield Date
Eurozone 2.560% July 5, 2025
United States 4.348% July 5, 2025
The US 10-year Treasury yield remains above the Eurozone’s, but the gap has narrowed in recent months.
Central Bank Policy Rates
Central Bank Policy Rate Last Change/Status
ECB 2.00% (Deposit Rate) Cut by 25 bps in June 2025
Federal Reserve 4.25%–4.50% Unchanged since Dec 2024
The ECB recently cut its deposit rate to 2.00% RFR 2.15% MLF 2.4%, its lowest in over two years, as inflation nears target and growth remains subdued.
The Fed has held its target range steady at 4.25%–4.50% since December 2024, with markets expecting possible cuts later in 2025 on cautious wait and see approach by feds
Rate and Yield Differentials
Metric US Eurozone Differential (US - Eurozone)
Policy Rate 4.25–4.50% 2.00% 2.25–2.50%
10-Year Bond Yield 4.35% 2.560% 1.79%
Yield Differential: The US 10-year yield exceeds the Eurozone’s by 1.79 percentage points, a key driver for capital flows and EUR/USD direction ,but strong euro zone economic outlook offset the yield and bond advantage giving the euro buy advantage .
Policy Rate Differential: The Fed’s policy rate is 2.25–2.50 percentage points higher than the ECB’s, though the gap is expected to narrow if the Fed cuts rates later this year.
Market Implications
EUR/USD: The narrowing yield and rate differentials have supported euro strength in recent weeks.
Bond Markets: US yields remain higher, but the Eurozone’s 10-year yield is at a multi-year high, reflecting persistent inflation and reduced ECB accommodation.
Central Bank Outlook: Both the Fed and ECB are expected to remain data-dependent, with further easing possible if economic conditions warrant.
The euro is currently strong against the dollar, with narrowing rate and yield differentials reflecting shifting monetary policy expectations and global economic condition.
#eurusd
EUR/USD: 1.17735
The euro has strengthened against the US dollar, trading near its highest level since early 2024, supported by a softer DXY and stable Eurozone outlook.
10-Year Government Bond Yields
Region 10-Year Yield Date
Eurozone 2.560% July 5, 2025
United States 4.348% July 5, 2025
The US 10-year Treasury yield remains above the Eurozone’s, but the gap has narrowed in recent months.
Central Bank Policy Rates
Central Bank Policy Rate Last Change/Status
ECB 2.00% (Deposit Rate) Cut by 25 bps in June 2025
Federal Reserve 4.25%–4.50% Unchanged since Dec 2024
The ECB recently cut its deposit rate to 2.00% RFR 2.15% MLF 2.4%, its lowest in over two years, as inflation nears target and growth remains subdued.
The Fed has held its target range steady at 4.25%–4.50% since December 2024, with markets expecting possible cuts later in 2025 on cautious wait and see approach by feds
Rate and Yield Differentials
Metric US Eurozone Differential (US - Eurozone)
Policy Rate 4.25–4.50% 2.00% 2.25–2.50%
10-Year Bond Yield 4.35% 2.560% 1.79%
Yield Differential: The US 10-year yield exceeds the Eurozone’s by 1.79 percentage points, a key driver for capital flows and EUR/USD direction ,but strong euro zone economic outlook offset the yield and bond advantage giving the euro buy advantage .
Policy Rate Differential: The Fed’s policy rate is 2.25–2.50 percentage points higher than the ECB’s, though the gap is expected to narrow if the Fed cuts rates later this year.
Market Implications
EUR/USD: The narrowing yield and rate differentials have supported euro strength in recent weeks.
Bond Markets: US yields remain higher, but the Eurozone’s 10-year yield is at a multi-year high, reflecting persistent inflation and reduced ECB accommodation.
Central Bank Outlook: Both the Fed and ECB are expected to remain data-dependent, with further easing possible if economic conditions warrant.
The euro is currently strong against the dollar, with narrowing rate and yield differentials reflecting shifting monetary policy expectations and global economic condition.
#eurusd
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.