Breaking: EUR/USD plunges sub-1.1600

The EUR/USD pair has pierced the 1.1600 level amid persistent dollar's momentum, trading at its lowest September 2020. The greenback keeps strengthening despite US government bond yields retreated from fresh multi-month peaks, with the yield on the 10-year Treasury note currently at around 1.52% after peaking at 1.56% earlier in the day. Wall Street trades mixed, with major indexes off intraday lows. Nevertheless, mountain speculation the US Federal Reserve will have to trim facilities sooner than anticipated amid persistent inflationary pressures, fuels demand of the American currency.

The slump is also technical-related as the pair broke to fresh 2021 lows earlier in the day. Bottlenecks and supply shortages elsewhere make the US currency more attractive, although Federal Reserve chief Powell acknowledged supply-side constraints are holding back the economy. However, he also repeated that the US economy is getting close to achieving the bar for tapering pandemic-related facilities programs.