1 Jul 2015
EUR/USD drops to fresh session low, yield spread favours USD
FXStreet (Mumbai) - The EUR/USD pair dropped to a session low of 1.1103 as the benchmark US-German bond yield spread widened.
Yield spread widened to 159 basis points
The common currency failed to capitalize on the drop in the ‘Yes’ vote showed by the Greek referendum poll. The pair turned lower lower from 1.1130 levels. Moreover, the US-German 10-year yield spread widened to 159 basis points, which weighed over the common currency.
The US interest rate outlook continues to push the treasury yield higher. On the other hand, the German bund yield remained flat to negative due to Greek crisis. A weaker-than-expected Spanish PMI reports also weighed over the common currency. Ahead in the day, the German and Eurozone PMI numbers could influence the pair.
EUR/USD Technical Levels
The pair currently trades at 1.1106. A break above the immediate resistance at 1.1130 (June 26 low) could see the pair re-test the stiff resistance at 1.1161 (hourly 100-MA). On the other hand, support is seen at 1.11, under which a next major support is seen at 1.1082 and 1.1050 (Mar 26 high).
Yield spread widened to 159 basis points
The common currency failed to capitalize on the drop in the ‘Yes’ vote showed by the Greek referendum poll. The pair turned lower lower from 1.1130 levels. Moreover, the US-German 10-year yield spread widened to 159 basis points, which weighed over the common currency.
The US interest rate outlook continues to push the treasury yield higher. On the other hand, the German bund yield remained flat to negative due to Greek crisis. A weaker-than-expected Spanish PMI reports also weighed over the common currency. Ahead in the day, the German and Eurozone PMI numbers could influence the pair.
EUR/USD Technical Levels
The pair currently trades at 1.1106. A break above the immediate resistance at 1.1130 (June 26 low) could see the pair re-test the stiff resistance at 1.1161 (hourly 100-MA). On the other hand, support is seen at 1.11, under which a next major support is seen at 1.1082 and 1.1050 (Mar 26 high).