9 Dec 2014
EUR/USD continues to rise on narrowing bond yield spread
FXStreet (Mumbai) - The single currency continues to rise slowly and steady ahead of the US session as the sharp decline in the US treasury yields titled the US-Eurozone bond yield spread in favor of the Euro.
The pair now trades 0.59% higher at 1.2387 levels as the benchmark bond yields in the Eurozone have outperformed their US counterparts. The 10-yr yield in the US is down 3 basis points to trade at 2.231%, while those in the Germany are down 1.3 basis points to trade at 0.74%. Elsewhere, the French 10-yr yield is up marginally at 0.978%. Meanwhile, in the US, yields at the short-end of the curve have declined as well. The 2-yr yield is currently down 2.4 basis points at 0.612%.
EUR/USD Technical Levels
The immediate resistance is seen at 1.2393 (Dec 5 high), above which gains could be extended to 1.2441 (Nov 3 low). Meanwhile, support is seen at 1.2357 and 1.23 levels.
The pair now trades 0.59% higher at 1.2387 levels as the benchmark bond yields in the Eurozone have outperformed their US counterparts. The 10-yr yield in the US is down 3 basis points to trade at 2.231%, while those in the Germany are down 1.3 basis points to trade at 0.74%. Elsewhere, the French 10-yr yield is up marginally at 0.978%. Meanwhile, in the US, yields at the short-end of the curve have declined as well. The 2-yr yield is currently down 2.4 basis points at 0.612%.
EUR/USD Technical Levels
The immediate resistance is seen at 1.2393 (Dec 5 high), above which gains could be extended to 1.2441 (Nov 3 low). Meanwhile, support is seen at 1.2357 and 1.23 levels.