‎The euro fell slightly in the European market on Wednesday against a basket of global currencies, falling from a two-month high against the U.S. dollar, with little activity in corrections and profit-taking, as German Treasury yields continue to strongly support the single currency, amid expectations of further tightening by the European Central Bank.‎

‎The U.S. currency has rebounded slightly, pending more results from the midterm elections of the U.S. Congress, the outcome of which could lead to entry from the government division in Washington, which would increase the risk of increased spending in the United States.‎

‎Euro Exchange Rate Today‎

‎EURUSD fell nearly 0.2% to $1.0056, from today's opening price of $1.0074, and hit today's high of $1.0088.‎

‎At Tuesday's settlement, the euro gained 0.55% against the dollar, its third consecutive daily gain, and hit a two-month high of $1.0096, thanks to a rise in German Treasury yields.‎

‎German bond yield‎

‎The two-year German Treasury yield fell 0.3% on Wednesday, extending losses for the second consecutive session, as part of a correction and profit-taking operations, after hitting the highest level since late 2008 in the previous session at 2.252%.‎

‎The rise in the yield of the two-year German bond to a 14-year high is related to the further aggressiveness expected from the ECB, which will narrow the large interest rate gap between Europe and the United States.‎

‎Pannoxburn Global Forex chief analyst Mark Chandler said the steady rise in German bond yields is supporting the euro, amid expectations of further tightening by the European Central Bank, reducing the spread with US Treasury yields.‎

‎US Dollar‎

‎The dollar index rose on Wednesday by about 0.15%, rebounding from a two-month low of 109.36 points recorded yesterday, reflecting a limited recovery in the greenback's levels against a basket of major and minor currencies.‎

‎Markets are awaiting the results of the midterm elections of the US Congress, the outcome of which could usher in an era of government division in Washington, which could thwart large social spending plans by Democrats.‎

‎There is also major US inflation data, due to be released on Thursday, as economists look forward to US inflation falling slightly in October, but any sudden increase will have positive effects on US currency levels.‎