Euro fell in European trade against dollar for third straight session under pressure from a new jump in US treasury yields, bolstering dollar purchases.

EUR/USD fell 0.2% to 1.1385, with an intraday high at 1.1421, after closing down 0.1% yesterday, the second loss in a row on profit-taking away from 1.1482.

The dollar index rose 0.2% on Tuesday for the third straight session against a basket of major rivals. 

Dollar's gains came as US treasury yields continue to rally amid estimates of an interest rate hike by the Fed next March, leading to four overall hikes in 2022. 

US 10-year treasury yields rose 2.1%, the third such gain in a row, marking two-year high at 1.856% while analysts expect it to reach 2% soon.

This development in the bonds market renewed concerns regarding the widening gulf between US and European treasury yields, as the European Central Bank continues to support ultra easy policies. 

Oil prices jumped on Tuesday, and hit nearly 8-year highs, resuming gains after taking a pause yesterday, while Brent continues to rise for the third day in a row, after the deadly attack by the Houthis group on Abu Dhabi, and the UAE pledged to respond quickly.

US crude rose 1.75% to the highest since October 2014 at $85.72 a barrel, after opening at $84.25, and hit a day low at $84.13, and Brent rose 1.8% to the highest since October 2014 at $88.08 a barrel, after opening at $86.52, and hit a day low at $86.47.

US crude lost 0.2% yesterday, while Brent crude gained 0.3%, in the second straight daily gain.

The United Arab Emirates pledged to respond quickly to the Houthis attack in Abu Dhabi that killed three people on Monday.

The Yemen's Houthi rebels claimed responsibility for the attack that caused fires and the explosion of three oil tankers near the oil tanker storage facility of Abu Dhabi's state-owned energy company, ADNOC.

Emirati police stated that the fires broke out in the Mussafah Industrial Area and at a construction site near Abu Dhabi International Airport, adding that the attack was carried out by drones.

This sparked concerns about geopolitical tensions in the Persian Gulf region, which is the world's largest oil producing region, while the UAE output of around 4 million barrels per day.

US stock and bond markets in Wall Street closed are closed today in observance of the Martin Luther King holiday, and will resume on Tuesday.

On Friday Dow Jones fell 0.5% or 201 points, and closed at 35,911 points, and posted a weekly loss of 0.8%.

S&P 500 rose 0.1% or 4 points to 4,663, and posted a weekly loss of 0.3%.

Nasdaq rose 0.6% or 87 points to 14,893, and registered a 0.3% weekly loss.

Oil prices continued to fall as the US market opened on Monday, and pulled back from multi-month highs, with the US crude giving up its 2-month high, while Brent gave up its 3-month high, due to profit-taking and renewed concerns over a slowdown in Asian demand.

US crude fell 1.0% to $83.53 barrel, after opening at $84.39, and hit an intraday high and the highest since November 10 at $84.76, and Brent crude fell 0.8% to $85.56 a barrel, after opening at $86.23, and hit a high and the highest since October 26 at $86.68.

The US crude gained 3.3% on Friday, and Brent rose 2.7%, marking their third gain in four days.

Oil prices gained around 6.25% last week, the fourth straight weekly gain, and the largest weekly gain since August.

This weekly gain came thanks to the US dollar's drop, and the US inventories fall to nearly 3-year low.

Renewed concerns about levels of fuel demand in Asia, especially in China and Japan, are currently weighing down on oil prices.

Data showed the Chinese economy growth during the fourth quarter of 2021 was at the lowest pace in two years, and the retail sales fell sharply during December, which shows that China is still suffering from the pandemic economic fallout.

The Japanese government will tighten its Covid restrictions in states to prevent the rapid spread of the Omicron variant, which is expected to lower fuel demand in the world's third largest oil consumer.