# Euro Slides Below 1.1700 as US Dollar Rebounds on Rising Yields, Gold and Ripple Hold Firm

> The US Dollar Index climbed 0.10% to 98.84 following robust jobless claims data and a recovery in Treasury yields. Consequently, EUR/USD gave up its 1.1700 milestone to trade near 1.1681, while Gold stayed above $4,500 and Ripple extended gains past $1.16.

**Type:** article · **Category:** Market · **Published:** 2026-08-21 · **Source:** TrendKia
**Canonical:** https://trendkia.com/en/market/us-dollar-men-majabuti-se-1-1700-ke-stara-se-niche-khisaka-euro-janen-gold-aura-crypto-bajara-ka-hala-19310 · **Language:** English
**Tags:** EUR/USD, US Dollar Index, Forex Market, Gold Price, Ripple XRP, Germany PPI, US Treasury, finance

The Euro's recent rally beyond the 1.1700 benchmark hit a roadblock as a sudden resurgence in the US Dollar pulled the shared currency back to around 1.1681. Fresh data showing solid jobless claims in the United States helped revive demand for the Greenback, causing European currency bulls to pause after reaching a three-month high. Market participants are now closely monitoring upcoming flash PMI releases on both sides of the Atlantic, which are expected to offer clearer guidance on upcoming policy moves by the Federal Reserve and the European Central Bank.

## US Dollar Index Advances as Rate Expectations Pivot
The US Dollar Index (DXY), which measures the Greenback against a basket of six global counterparts, edged up by 0.10% to trade at 98.84. This bounce effectively capped the Euro's advance past the 1.1700 barrier, temporarily shutting the door on a potential test of the 1.1800 level last reached on April 17. In interest rate derivative markets, swap pricing indicates a 35% probability of a rate increase in September. Meanwhile, the odds of a policy hike by December remain firmly anchored around 64%.

## German Producer Inflation Surprises to the Upside
Economic indicators from Europe provided a notable boost to fundamental data. Germany’s Producer Price Index (PPI) for July expanded to 1.1% month-over-month, bouncing back from a prior reading of -0.3%. On an annual basis, factory gate inflation accelerated from 1.8% to 3.0%, surpassing consensus estimates of 2.7%. The higher-than-expected producer inflation highlights lingering price pressures within Europe's largest industrial engine, presenting an ongoing challenge for European monetary policy planning.

## EUR/USD Technical Outlook and Key Price Levels
On the daily technical chart, EUR/USD continues to trade at 1.1681. The pair remains comfortably above a dense cluster of former resistance levels, including the broken trend-line at 1.1456 and a triple simple moving average (comprising 50-day, 100-day, and 200-day SMAs) grouped near 1.1472. Holding above these foundational demand zones maintains a broader bullish structural bias. However, with the 14-day Relative Strength Index (RSI) reading 73.13, conditions are technically overbought, suggesting that additional upside may be constrained in the short term by consolidation or modest pullbacks.

Looking upward, immediate horizontal resistance sits at 1.1849, requiring a daily candlestick close above this threshold to unlock further bullish momentum. On the downside, immediate support is located around the current spot price of 1.1681. Deeper support rests at the former trend-line breakdown point of 1.1456 and the grouped moving average cluster around 1.1472. Any corrective dips toward this zone are anticipated to draw renewed buying interest as long as the broader technical setup remains intact. Notably, the Euro remains the top-performing major currency against the US Dollar this week.

## GBP/USD Pulls Back While Gold Holds Above $4,500
The British Pound felt the impact of the Dollar's late-session recovery. GBP/USD relinquished a portion of its daily gains, receding toward the 1.3630–1.3620 range on Thursday. Despite the Greenback's modest bounce, Sterling maintained a relatively stable posture as market participants braced for key economic data releases scheduled on the UK calendar on Friday. Meanwhile, Gold demonstrated resilience by reclaiming lost ground above the significant $4,500 per troy ounce mark, overcoming both Dollar strength and rising Treasury yields.

## Ripple Surges Past $1.16 amid Broader Crypto Optimism
In cryptocurrency markets, Ripple (XRP) maintained strong bullish control, extending its gains past $1.16 on Thursday. The cross-border payment token has surged more than 20% since Monday, reflecting growing appetite for risk assets. Market sentiment across the broader digital asset ecosystem also showed a marked improvement. The Crypto Fear & Greed Index rose from 46 (Neutral) on Wednesday to 62 (Greed) on Thursday, signaling heightened investor confidence across the sector.

## US Treasury Announces Significant Expansion in Buyback Size
Departing from its regular schedule, the US Treasury Department issued a major policy announcement on Wednesday at 12:32 GMT. The department stated that it will at least double the size of its liquidity support buyback operations within the 10-to-20-year and 20-to-30-year maturity sectors. Under the updated framework, the maximum operational limit will increase from $2 billion per transaction to at least $4 billion. This expanded buyback initiative will take effect on September 9 and run through November 4, providing substantial liquidity support to long-term government debt markets.

## What this means for you
**Across India:** A rebounding US Dollar could exert mild depreciation pressure on the Indian Rupee, potentially tweaking import bill costs for commodities and crude oil.

**For Travelers & Investors:** The pull-back in EUR/USD makes currency exchanges slightly more favorable for Indians traveling or studying in Europe, while gold and crypto investors benefit from sustained upward momentum in precious metals and digital assets.

## Questions & Answers

### 1. Why did EUR/USD fall below the 1.1700 handle?
EUR/USD dropped below 1.1700 after strong US jobless claims data and rising Treasury yields boosted the US Dollar Index (DXY) by 0.10% to 98.84.

### 2. What did Germany's July PPI report reveal?
Germany's Producer Price Index rose 1.1% MoM and expanded 3.0% YoY, beating the market forecast of 2.7% and reflecting persistent producer-side inflation.

### 3. How did Gold and Ripple perform despite Dollar strength?
Gold reclaimed levels above $4,500 per troy ounce, while Ripple (XRP) extended gains above $1.16, marking a rally of over 20% since Monday.

### 4. What liquidity changes did the US Treasury announce?
The US Treasury announced it will double its liquidity buyback limit from $2 billion to at least $4 billion per operation in 10-30 year sectors between September 9 and November 4.

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