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2 Jun 2015
EUR/GBP rises to 0.7245
FXStreet (Mumbai) - The bid tone on the common currency helped the EUR/GBP cross take out offers at 0.72 earlier today to hit a session high of 0.7245 levels.
GBP underperforms despite strength in Gilt yields
The EUR/GBP cross shot higher as the investors cheered the uptick in the Eurozone headline and core inflation in May. However, the weakness in the GBP contradicts the 10 basis points rise in the benchmark 10-year Gilt yield. Even the German 10-year yield is up almost 10 basis points. Consequently, the yield differential is unlikely to be the reason behind the uptick in the cross.
Moreover, the EUR/USD took out offers at 1.10 levels to print a high of 1.1044, while the GBP/USD is once again struggling to rise above its hourly 50-MA located at 1.5266.
EUR/GBP Technical Levels
The immediate resistance is located at 0.7250, above which gains could be extended to 0.7282. On the flip side, a break below its 50-DMA at 0.7215 could drive the pair lower to 0.7178 levels.
GBP underperforms despite strength in Gilt yields
The EUR/GBP cross shot higher as the investors cheered the uptick in the Eurozone headline and core inflation in May. However, the weakness in the GBP contradicts the 10 basis points rise in the benchmark 10-year Gilt yield. Even the German 10-year yield is up almost 10 basis points. Consequently, the yield differential is unlikely to be the reason behind the uptick in the cross.
Moreover, the EUR/USD took out offers at 1.10 levels to print a high of 1.1044, while the GBP/USD is once again struggling to rise above its hourly 50-MA located at 1.5266.
EUR/GBP Technical Levels
The immediate resistance is located at 0.7250, above which gains could be extended to 0.7282. On the flip side, a break below its 50-DMA at 0.7215 could drive the pair lower to 0.7178 levels.