FXStreet (Mumbai) – The bid tone on the common currency is not strong enough to help the EUR/USD pair extend gains above 1.1310-1.1320 levels as the US-German 10-year bond yield spread stays unchanged on the day despite uptick in the German yields.
EUR struggles as yield spread unchanged at 147 bps
The EUR witnessed a minor spike in demand that helped the EUR/USD pair recover 1.1282 mainly on account of the uptick seen in the German 10-year yield. However, the bid tone seems to have exhausted at a high of 1.1318 as the US-German 10-year yield spread remains unchanged on the day at 147 basis points. At the moment, the 10-year yield in Germany is trading at 1.013%, while its US counterpart is trading at 2.484%.
Ahead in the day, an empty data docket in the Eurozone puts more emphasis on the yield spread. Investors shall watch out for any news regarding Greek deal saga and monthly advance retail sales figures in the US.
EUR/USD Technical Levels
The pair currently trades at 1.1304. The immediate resistance is located at 1.1320, above which the pair could target the previous session’s high at 1.1384. On the downside, the pair could fall to 1.1250, in case it dips below immediate support at 1.1293 (23.6% R of 1.3991-1.0461).
(Market News Provided by FXstreet)