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15 May 2015
EUR/USD: falls to 1.1350 as yield spread tilts in favor USD
FXStreet (Mumbai) - The EUR/USD pair extended to the drop to hit a session low of 1.1350 as the German-US 10-year bond yield spread narrowed, thereby supporting the greenback.
EUR weakens as treasury yields stay relatively resilient
The shared currency has extended losses since the drop in the US 10-year yield is relatively less compared to the drop seen in the German 10-year yield. Consequently, the yield spread now favors US dollar. The 10-year treasury yield is now down 4.9 basis points, while the 10-year German yield is now down almost 6 basis points.
The yield play is likely to remain in place throughout the European session, given the absence of major economic data releases.
EUR/USD Technical Levels
The pair currently trades at 1.1360. The immediate resistance is located at 1.1443, above which the gains could be extended to 1.1532. On the other hand, a break below 1.1324, could drive the pair lower to 1.1293.
EUR weakens as treasury yields stay relatively resilient
The shared currency has extended losses since the drop in the US 10-year yield is relatively less compared to the drop seen in the German 10-year yield. Consequently, the yield spread now favors US dollar. The 10-year treasury yield is now down 4.9 basis points, while the 10-year German yield is now down almost 6 basis points.
The yield play is likely to remain in place throughout the European session, given the absence of major economic data releases.
EUR/USD Technical Levels
The pair currently trades at 1.1360. The immediate resistance is located at 1.1443, above which the gains could be extended to 1.1532. On the other hand, a break below 1.1324, could drive the pair lower to 1.1293.