EUR/USD rebounds sharply and hits 6-day highs

• Dollar tumbles across the board amid lower US yields. 
• EUR/USD rises above Monday’s highs, also supported by a rally in GBP/USD. 

The EUR/USD pair rose more than 50 pips since the beginning of the US session supported by a decline of the greenback across the board. It erased losses and now trades at 1.1337, the highest level in six days and slightly below last week top.  

The greenback is falling sharply in the market amid dovish comments from Fed’s Mester and also a decline in US bond yields. The 10-year fell to 2.63%, approaching to February lows. Despite rising against the US dollar, the euro continues to be among the weakest currencies of the day. It extended losses against the pound and also the Swiss franc. 

Another boost to the upside in EUR/USD comes from the GBP/USD rally. Cable broke above 1.3000 and soared to 1.3030, rising more than a hundred pips over the last three hours. 

EUR/USD appears to be posited to test last week highs around 1.1340. A consolidation above the last one could be seen as a bullish signal for the euro, while if it fails around current levels, more range trading between 1.1270 and 1.1330 seems likely.