FXStreet (Mumbai) – The EUR/USD pair deflated to a fresh session low of 1.1213 even though the Greek 10-year bond yield dipped 52 basis points on the possibility of reaching a deal with creditors by the weekend.
EUR falls along with periphery bond yields
The drop in the common currency is accompanied by a sharp drop in the benchmark bond yields across the periphery Eurozone nations. The Greek 10-year yield fell 52 basis points, while the Italian and Spanish 10-year yields fell 8.2 basis points each. Moreover, the drop in the periphery bond yields indicates the bond markets are cheering the possibility of Greece reaching the deal.
Still, the EUR has been sold today, ignoring the drop in the periphery yields and a better-than-expected private sector activity data. Ahead in the day, the pair could be influenced by the US durable goods orders and manufacturing data.
EUR/USD Technical Levels
The immediate support is seen at 1.12, under which the losses could be extended to 1.1126. On the flip side, a break above 1.1293 could see the pair re-test 1.1340-1.1350.
(Market News Provided by FXstreet)