EUR/USD caught between rising stocks and rise in German yields

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 1, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The EUR/USD pair is trading largely sideways on the day as traders are caught between rising equity markets and rising German bond yields despite speculation of aggressive ECB easing.

    German yields rise

    The 2-year yield hit a record low of -0.575% yesterday but trades on a positive note today. The 10-yr yield is up more than 2 basis points as well. This is despite increasing calls for a more aggressive ECB action next week. The rise in yields is capping losses in the common currency.

    Meanwhile, gains are being capped by a 1.10% gain in the pan-European Euro Stoxx 50 index. The spot remains at the mercy of bond yields ahead of the ECB meeting. As for today, the focus is on the PMI release across Eurozone and in the US.

    EUR/USD Technical Levels

    The spot currently trades around 1.0875. The immediate resistance is seen at 1.0914 (hourly 50-MA), above which the pair could rise to 1.0968 (hourly 100-MA). On the other hand, a breakdown of immediate support at 1.0858 (daily low) could see prices drift lower to 1.08 handle.
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