BUZZ-COMMENT-EUR/USD uptrend in doubt as mood turns cautious

By Reuters7 days ago

May 5 (Reuters) - The EUR/USD uptrend has been technically undermined, as investor jitters over the potential for higher U.S. interest ratesdampen risk appetite and underpin demand for the dollar.

Comments from Dallas Federal Reserve President Robert Kaplan (non-voter) on Friday, suggesting the Fed should at least start to discuss tapering asset purchases , were followed on Tuesday by U.S. Treasury Secretary Janet Yellen, saying rates may have to rise to prevent the U.S. economy from overheating .

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Risk assets sensitive to higher U.S. yields tumbled and pushed the dollar higher , even though Treasury yields remain contained . While Yellen later clarified her remarks , the markets remained nervous due to the realization of how investors will react when Fed Chair Jerome Powell inevitably signals the Fed will start to reel in extreme monetary stimulus.

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