The euro wallowed near six-week lows against the dollar on Thursday, weighed by lower government debt yields amid rising expectations the European Central Bank is poised to cut rates at next month’s meeting.
A dovish ECB has helped push down yields on German and U.S. government debt, with the benchmark U.S.10-year note yield slipping to a six-month low on Wednesday.
The German Bunds and U.S. Treasury yield moves are often correlated even though the U.S. economy is seen growing faster than Europe, which is expected to eventually send Treasury yields higher.
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