12 May 2015
EUR/USD extends beyond 1.1200
FXStreet (Mumbai) - EUR/USD prolongs its upward trajectory, storming through the 1.12 barrier in the European morning, as the shared currency continues to outweigh its American counterpart, largely on the back of soaring German bund yields. While Greece’s confirmation on a payment of €750 million to the IMF also boosted the major.
EUR/USD back above 1.12
The EUR/USD trades 0.61% higher at 1.1224, hovering close to fresh session highs at 1.1232. EUR/USD remains heavily bid largely with fairly quiet economic calendar on both sides of the Atlantic.
Moreover, skyrocketing German 10-yr bund yields standing at 0.666%, up 12% on the day, continues to lift the EUR/USD pair.
Also, easing concerns over Greece after the country confirmed a payment of €750 million to the International Monetary Fund on Monday also kept the major supported.
Meanwhile, analysts at Rabobank explains, "that ongoing tension – which seems set to continue - understandably hit EUR, which has slipped as far as 1.1140; but it hardly argues for a sell-off in core bond yields too. Indeed, rather than fear over a looming end to ECB QE or Fed rate hikes, markets seem confused, and so can find good reasons for not wanting to hold anything right now."
Traders now focus on tomorrow’s German prelim GDP, CPI figures and EMU GDP data for further impact on the main currency pair amid a data-dry EUR calendar today.
EUR/USD Technical Levels
The pair has an immediate resistance at 1.1268 (April 30 High) levels, above which gains could be extended to 1.1300 levels. On the flip side, support is seen at 1.1135 (Today’s Low) below which it could extend losses to 1.1070 (April 30 Low) levels.
EUR/USD back above 1.12
The EUR/USD trades 0.61% higher at 1.1224, hovering close to fresh session highs at 1.1232. EUR/USD remains heavily bid largely with fairly quiet economic calendar on both sides of the Atlantic.
Moreover, skyrocketing German 10-yr bund yields standing at 0.666%, up 12% on the day, continues to lift the EUR/USD pair.
Also, easing concerns over Greece after the country confirmed a payment of €750 million to the International Monetary Fund on Monday also kept the major supported.
Meanwhile, analysts at Rabobank explains, "that ongoing tension – which seems set to continue - understandably hit EUR, which has slipped as far as 1.1140; but it hardly argues for a sell-off in core bond yields too. Indeed, rather than fear over a looming end to ECB QE or Fed rate hikes, markets seem confused, and so can find good reasons for not wanting to hold anything right now."
Traders now focus on tomorrow’s German prelim GDP, CPI figures and EMU GDP data for further impact on the main currency pair amid a data-dry EUR calendar today.
EUR/USD Technical Levels
The pair has an immediate resistance at 1.1268 (April 30 High) levels, above which gains could be extended to 1.1300 levels. On the flip side, support is seen at 1.1135 (Today’s Low) below which it could extend losses to 1.1070 (April 30 Low) levels.