# EUR/USD Short Squeeze Underway as Yields Drag US Dollar Lower

> EUR/USD rallied as falling Treasury yields weakened the dollar despite US third-quarter GDP growth of 3.4% annualized and sticky core PCE inflation. The ECB held its deposit rate at 2.5% with a hawkish tone, and a December hike remains in play.

- Date: 2026-10-31 · published 2026-11-01T12:08:20.853Z
- Category: macro · region Global · magnitude low
- Page: https://feedsoft.ai/events/8879-eur-usd-short-squeeze-underway-as-yields-drag-us-dollar-lower
- Commodities: [Euro (USD per EUR)](https://feedsoft.ai/c/EURUSD.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

A weaker dollar and firmer euro reduce the dollar cost of dollar-priced feed imports for European buyers, while rising energy prices feed through to input costs.

## Read by commodity

- DXY: bearish ▼
- EURUSD: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| EURUSD | 2025-05-29 | [EUR/USD rebounds sharply as soft US jobs, GDP data sink US Dollar](https://feedsoft.ai/events/24905-eur-usd-rebounds-sharply-as-soft-us-jobs-gdp-data-sink-us-dollar.md) | +1.2% | +3.8% |
| EURUSD | 2025-12-22 | [EUR/USD rises as ECB stability outshines US Dollar struggles](https://feedsoft.ai/events/21722-eur-usd-rises-as-ecb-stability-outshines-us-dollar-struggles.md) | +0.3% | -0.1% |
| EURUSD | 2026-04-30 | [EUR/USD advances as ECB holds rates, Dollar softens on mixed data](https://feedsoft.ai/events/19943-eur-usd-advances-as-ecb-holds-rates-dollar-softens-on-mixed-data.md) | +0.5% | -0.4% |
| EURUSD | 2020-10-20 | [US Dollar Lower For Third Day - ADM Investor Services](https://feedsoft.ai/events/50815-us-dollar-lower-for-third-day-adm-investor-services.md) | +0.2% | +0.6% |
| EURUSD | 2025-11-12 | [EUR/USD extends winning streak as Dollar slips ahead of key US House vote](https://feedsoft.ai/events/22156-eur-usd-extends-winning-streak-as-dollar-slips-ahead-of-key-us-house-vote.md) | +0.3% | +0.9% |
| DXY | 2024-07-31 | [Stocks rise; yields, dollar lower as Fed signals rate cut](https://feedsoft.ai/events/29141-stocks-rise-yields-dollar-lower-as-fed-signals-rate-cut.md) | -0.5% | -1.9% |
| DXY | 2019-06-21 | [Dollar extends losses to 2-week low as US bond yields fall](https://feedsoft.ai/events/7440-dollar-extends-losses-to-2-week-low-as-us-bond-yields-fall.md) | -0.1% | +0.1% |
| DXY | 2022-11-28 | [Dollar weakens as U.S. bond yields drop](https://feedsoft.ai/events/38899-dollar-weakens-as-u-s-bond-yields-drop.md) | -1.1% | -1.1% |

## Sources

- forex.com: https://www.forex.com/en-au/news-and-analysis/eur-usd-short-squeeze-underway-as-yields-drag-us-dollar-lower/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.