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14 May 2015
EUR/USD: backs away from three-month high, mimics German bond yields
FXStreet (Mumbai) - The EUR/USD trades around 1.1390, after having hit a three-month high of 1.1429 as the shared currency continues to mimic the moves in the volatile German bond yields.
EUR tracks bond yield differential
The shared currency has been the major beneficiary of the rout in the bond markets, triggered mainly by the sell-off in the German bunds. The last month gains in the pair now stand closer to 9% as the difference between benchmark US and euro zone 10-year yields shrink from the euro-lifetime high touched in March.
The German 10-year yield is volatile again, as it moved from a low of 0.703% to a daily high of 0.758%. The EUR, which is mimicking the bond yield, shot to a high of 1.1429 before falling back to 1.1390 levels.
EUR/USD Technical Levels
The immediate resistance is seen at 1.1429, above which the pair could rise to 1.15 levels. On the flip side, a failure to sustain above 1.1390 could push the pair down to 1.135 levels.
EUR tracks bond yield differential
The shared currency has been the major beneficiary of the rout in the bond markets, triggered mainly by the sell-off in the German bunds. The last month gains in the pair now stand closer to 9% as the difference between benchmark US and euro zone 10-year yields shrink from the euro-lifetime high touched in March.
The German 10-year yield is volatile again, as it moved from a low of 0.703% to a daily high of 0.758%. The EUR, which is mimicking the bond yield, shot to a high of 1.1429 before falling back to 1.1390 levels.
EUR/USD Technical Levels
The immediate resistance is seen at 1.1429, above which the pair could rise to 1.15 levels. On the flip side, a failure to sustain above 1.1390 could push the pair down to 1.135 levels.