EURUSD continues the tumble lower

Fundamentally, the move is being fueled by a sharp rise in U.S. Treasury yields following the stronger-than-expected U.S. jobs report. The 10-year yield is up 6.3 basis points, while the 2-year yield has surged 11.7 basis points, helping to underpin the U.S. dollar. The employment data has also added a new layer of intrigue ahead of Fed Chair Kevin Warsh's first FOMC meeting on June 16-17. Recall that three policymakers dissented at the last meeting, favoring the removal of the easing bias. With labor market strength persisting and higher oil prices beginning to influence inflation expectations, the debate may increasingly shift toward whether policy should move to neutral—or even hint at a more hawkish stance—rather than maintain an easing bias. This article was written by Greg Michalowski at investinglive.com.

• The 10-year yield is up 6.3 basis points, while the 2-year yield has surged 11.7 basis points, helping to underpin the U.S. dollar.
• The employment data has also added a new layer of intrigue ahead of Fed Chair Kevin Warsh's first FOMC meeting on June 16-17.
• Recall that three policymakers dissented at the last meeting, favoring the removal of the easing bias.
• With labor market strength persisting and higher oil prices beginning to influence inflation expectations, the debate may increasingly shift toward whether policy should move to neutral—or even hint at a more hawkish stance—rather than maintain an easing bias.
• This article was written by Greg Michalowski at investinglive.com.