Euro nudges higher above 1.1450 as US yields, oil retreat

The EUR/USD pair saw mild gains around 1.1480 during the early Asian session on Friday as the US Dollar (USD) edged lower against the Euro (EUR) due to lower US Treasury yields and moderating oil prices. The 10-year US Treasury yield fell eight basis points to 4.94% from the previous session. Oil prices also dropped from their highest levels since mid-May.

Fed Governor Michelle Bowman was set to speak later on Friday. Despite hawkish expectations from the Fed, it may not raise rates as aggressively as the market anticipates, leaving the Greenback vulnerable to disappointment. The ECB raised its key deposit rate by 25 basis points to 2.50% from 2.25%, but reiterated it will not pre-commit to further steps.

ECB President Christine Lagarde warned that Middle East conflict and Russia's war on Ukraine would keep headline inflation "well above target" for an extended period. Technical analysis shows EUR/USD retaining a bearish near-term bias, hovering just above the lower Bollinger band, with the Relative Strength Index (14) at 35.35 close to the oversold threshold.