FXStreet (Mumbai) – The shared currency continues to outperform the pound for the fourth consecutive day in a row in the European morning, driving EUR/GBP to fresh four week highs just shy of 0.74 handle. The cross jumped nearly 40 pips largely on a sudden spike seen in the EUR/USD pair tracking skyrocketing German bund yields following ECB Draghi’s comments on Wednesday.
EUR/GBP rises from 0.7344
Currently, the EUR/GBP cross trades 0.42% higher fresh monthly highs at 0.7382. The cross in EUR/GBP extends its upward trajectory largely on the back of strengthening shared currency backed by rallying German 10-yr bund yields which trades at 0.981%, recording a 12% gains on the day.
The yields across the Euro zone rallied despite ongoing talks over Greece failed to bring any significant progress, mainly driven Draghi’s comments yesterday that volatility on the bond market is likely to persist.
On the other hand, the pound also remain heavily bid amid broad based US dollar sell-off ahead of BOE monetary policy decision due later today which is unlikely to bring any new surprise to the markets.
EUR/GBP Levels to consider
To the upside, the next resistance is located at 0.7400 and above which it could extend gains to at 0.7420 (May 1 High) levels. To the downside immediate support might be located at 0.7328 (Today’s Low) levels below that at 0.7300 (May 1 Low) levels.
(Market News Provided by FXstreet)