8 Jun 2015
EUR/USD extends gains as German yields rise
FXStreet (Mumbai) - The EUR/USD pair extended gains to print a fresh session high of 1.1176 as the German yields inched higher after witnessing a loss of momentum on Friday.
EUR supported by favorable yield spread
The German benchmark 10-year Bund yield currently trades 3.4 basis points higher at 0.884%, while its US counterpart is moderately weak at 2.399%. The US-German yield spread currently stands at 151 basis points, compared to 157 basis points see on Friday post the release of a strong jobs report.
The sharp rise in the US yields and the resulting rise in the US-German yield spread had weighed heavily on the common currency on Friday, pushing it lower to 1.1048 levels. Ahead in the day, the markets are likely to track the yield spread and broader market sentiment with regards to the US dollar.
EUR/USD Technical Levels
The pair currently trades at 1.1158. The immediate resistance is seen at 1.1229 (23.6% R of 1.0461-1.1465), above which the gains could be extended to 1.1293 (23.6% R of 1.3991-1.0461). On the flip side, a break below 1.1130 could drive the pair lower to 1.1082.
EUR supported by favorable yield spread
The German benchmark 10-year Bund yield currently trades 3.4 basis points higher at 0.884%, while its US counterpart is moderately weak at 2.399%. The US-German yield spread currently stands at 151 basis points, compared to 157 basis points see on Friday post the release of a strong jobs report.
The sharp rise in the US yields and the resulting rise in the US-German yield spread had weighed heavily on the common currency on Friday, pushing it lower to 1.1048 levels. Ahead in the day, the markets are likely to track the yield spread and broader market sentiment with regards to the US dollar.
EUR/USD Technical Levels
The pair currently trades at 1.1158. The immediate resistance is seen at 1.1229 (23.6% R of 1.0461-1.1465), above which the gains could be extended to 1.1293 (23.6% R of 1.3991-1.0461). On the flip side, a break below 1.1130 could drive the pair lower to 1.1082.