EURO STRUGGLES
Two-year U.S. yields rose seven basis points to 3.466%, the highest since late 2007 and far above the ten-year at 3.10%. Yields have also climbed across Europe with double digit gains in Italy, Spain and Portugal. The dollar gained 0.7% to a five-week peak on the yen at 138.58 , with bulls looking to re-test its July top of 139.38.
"EUR/USD can remain below parity this week," said Joseph Capurso, head of international economics at CBA.
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