8 Jun 2015
EUR/USD rises above 1.12, yield spread favors EUR
FXStreet (Mumbai) - The bid tone on the common currency strengthened further, helping the EUR/USD run through offers at 1.12 and trade within a touching distance of 23.6% Fib R of 1.0461-1.1465. The pair clocked an intraday high of 1.1223.
Yield spread favors EUR
The demand for the single currency could be attributed to favorable US-German benchmark 10-year bond yield spread. The spread currently trades at 152 basis; down from 157 basis points seen on Friday post the release of a better-than-expected monthly non-farm payrolls report in the US.
Meanwhile, a better German industrial production and a higher trade surplus may have also contributed to better tone in the common currency. For the time being, the markets have shifted their attention away from the strong jobs data in the US and rate outlook.
EUR/USD Technical Levels
The pair currently trades at 1.1206. The immediate resistance is located at 1.1229, above which the pair could target of 1.1283. On the flip side, a break below 1.12 could see the pair re-test 1.1150.
Yield spread favors EUR
The demand for the single currency could be attributed to favorable US-German benchmark 10-year bond yield spread. The spread currently trades at 152 basis; down from 157 basis points seen on Friday post the release of a better-than-expected monthly non-farm payrolls report in the US.
Meanwhile, a better German industrial production and a higher trade surplus may have also contributed to better tone in the common currency. For the time being, the markets have shifted their attention away from the strong jobs data in the US and rate outlook.
EUR/USD Technical Levels
The pair currently trades at 1.1206. The immediate resistance is located at 1.1229, above which the pair could target of 1.1283. On the flip side, a break below 1.12 could see the pair re-test 1.1150.