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23 Jun 2015
EUR/GBP hit session low of 0.7098
FXStreet (Mumbai) - The EUR/GBP pair continued its steady decline to hit a session low of 0.7098 amid a drop in the periphery Eurozone bond yields and up tick in the German bond yields.
EUR ditched amid risk-on in equities?
The latest chatter in the market is about EUR being ditched to fund trades on account a renewed risk on rally in the equity markets across the globe. The increased possibility of Greek deal by weekend triggered a rally in the riskier assets. Low yielding currencies with current account surpluses like EUR are being used to fund risk on carry trades.
Consequently, a relatively high yielding British Pound gained an edge over the EUR right from the early European session.
EUR/GBP Technical Levels
The immediate support is seen at 0.7088 (May 21 low), under which the pair could drop to 0.7054 (May 27 low). On the flip side, the immediate resistance is seen at 0.7123 (June 19 high), above which the pair could rise to 0.7150.
EUR ditched amid risk-on in equities?
The latest chatter in the market is about EUR being ditched to fund trades on account a renewed risk on rally in the equity markets across the globe. The increased possibility of Greek deal by weekend triggered a rally in the riskier assets. Low yielding currencies with current account surpluses like EUR are being used to fund risk on carry trades.
Consequently, a relatively high yielding British Pound gained an edge over the EUR right from the early European session.
EUR/GBP Technical Levels
The immediate support is seen at 0.7088 (May 21 low), under which the pair could drop to 0.7054 (May 27 low). On the flip side, the immediate resistance is seen at 0.7123 (June 19 high), above which the pair could rise to 0.7150.