The Euro traded higher for a third day in a row versus the US dollar, closing just above 1.17, 0.45% up. It seems the common currency took advantage of a dollar slip versus basically all majors, except for commodity currencies like CAD and AUD, as China and Europe warned markets of a potential recession if trade tensions continue to escalate.
On this safe-haven context, US Treasuries were well demanded, putting downward pressure on US yields, while short term yields in Germany further supported Euro strength.
European yields apparently advanced on some comments by an ECB member around next steps for rate moves on autumn 2019. From a technical perspective, the EURUSD moved above its 21-day moving average (around 1.1675) which should act as first short-term support. On the upside, if the currency manages to stay above 1.17, we’ll have to see if the pair is able to break resistance at 1.1713 (June 6 low).