18 May 2015
EUR/USD prints session low at 1.1378
FXStreet (Mumbai) - The European desks are favoring the US dollar, thereby pushing the EUR/USD pair to a session low of 1.1378 as the benchmark German-US bond yield spread titled in favor the USD.
EUR weakens as German yields underperform
The shared currency has been ditched since the German benchmark 10-year yield inched higher by almost two basis points to 0.66%. However, the US 10-year treasury yield advanced almost three basis points to 2.17%. Consequently, the yield spread titled in favor the US dollar.
Ahead in the day, the traders will look out for any revisions to the German inflation and growth forecasts by the Bundesbank. However, the yield spread is likely to remain the main guiding force for the EUR/USD pair.
EUR/USD Technical Levels
The pair currently trades at 1.1385, with the immediate support seen at 1.1370, under which losses could be extended to 1313. On the flip side, a break above 1.1405 (hourly 50-MA), above which the pair could re-test 1.1465.
EUR weakens as German yields underperform
The shared currency has been ditched since the German benchmark 10-year yield inched higher by almost two basis points to 0.66%. However, the US 10-year treasury yield advanced almost three basis points to 2.17%. Consequently, the yield spread titled in favor the US dollar.
Ahead in the day, the traders will look out for any revisions to the German inflation and growth forecasts by the Bundesbank. However, the yield spread is likely to remain the main guiding force for the EUR/USD pair.
EUR/USD Technical Levels
The pair currently trades at 1.1385, with the immediate support seen at 1.1370, under which losses could be extended to 1313. On the flip side, a break above 1.1405 (hourly 50-MA), above which the pair could re-test 1.1465.