EUR/USD & GBP/USD Retreat From Highs as Oil Rebounds, Yields Rise

EUR/USD and GBP/USD are pulling back from session highs as broader market sentiment shifts to a more cautious tone. EUR/USD remains modestly higher on the day by 0.08%, while GBP/USD has slipped back to unchanged levels after failing to sustain earlier upside momentum. A key driver of the reversal is the sharp rebound in crude oil, which surged back above $95 after trading as low as $89.85 earlier in the session. The oil recovery has contributed to rising U.S. Treasury yields, reinforcing dollar support and weighing on the major pairs. Higher yields typically bolster the greenback by improving its relative rate advantage, creating headwinds for EUR/USD and GBP/USD. Traders should monitor the interplay between energy markets and bond yields, as continued oil strength could sustain upward pressure on rates and limit further gains in both pairs. Near-term resistance for EUR/USD sits at the session high, while GBP/USD faces a key pivot around the flat line. A decisive break in either direction in yields or oil could set the tone for the next leg in these pairs.