EUR/GBP extends gains in early US session

FXStreet (Mumbai) - The shared currency shot up in the early NY session, taking the EUR/GBP pair to a fresh session high of 0.7333 levels.

Yield advantage favors EUR

The strength in the common currency today can be attributed to to reports from a French official that Pres. Obama told delegates that the strong dollar posed a problem. However, the White House denied the report. Still, the pair managed to consolidate on the gains and extend further as the German 10-year yield ticked 1.9 basis points higher to 0.869%. Meanwhile, the UK 10-year Gilt yield fell 2.6 basis points to 2.056%.

EUR/GBP Technical Levels

The pair currently trades at 0.734 with the immediate resistance seen at 0.7356, above which gains could be extended to 0.7384 (June 4 high). On the flip side, a break below 0.73 could push the pair back to the daily low at 0.7264.

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