Ella 
Further bearish sentiment for EUR/USD intensified, sending EUR/USD back to fresh six-month lows near 1.0570 on Tuesday.
On the other hand, the U.S. dollar index rose for the third consecutive day and hit a new 2023 high, currently at the end-November 2022 level of 106.00.
The pair fell sharply as U.S. bond yields surged across the board, while Germany’s 10-year Bund yield traded at a 12-year peak of 2.80%.
From a macro perspective, expectations of the Federal Reserve’s “long-term interest rate hike” stance still support the dollar’s sharp rise. This expectation was particularly strong at the latest FOMC meeting on September 20.
At the European Central Bank (ECB), recent board members have reached consensus on the possibility of a prolonged deadlock in the interest rate hike cycle, despite inflation continuing to be well above the bank’s target.
In the US, the Conference Board’s consumer confidence index will be in focus, followed by new home sales, the FHA house price index and a speech from regular FOMC voter Michelle Bowman (a hawk).
