European markets stabilize despite ongoing bond market concerns

European currency pairs showed relative stability during Tuesday's morning session despite lingering concerns from the bond market selloff. EUR/USD consolidated near 1.0830, recovering from overnight lows of 1.0805 as European equities opened with modest gains. GBP/USD traded sideways around 1.2650, finding support despite UK gilt yields remaining elevated at 4.25%. The calmer mood contrasts with Monday's sharp risk-off moves, though traders remain cautious about fiscal sustainability issues across major economies. EUR/GBP held steady at 0.8565 as both currencies faced similar headwinds. Market participants await ECB officials' comments scheduled later today for monetary policy clues. Technical levels show EUR/USD resistance at 1.0860 and support at 1.0800. The subdued volatility suggests markets are pausing before the next directional catalyst, with bond yields remaining the key driver for currency movements.