Currency Analyst since 2010

Euro is supported by the spike in German yields

EUR/USD is trading in the 1.1250 area after it hit 1.1285 on Wednesday. German 10-year Bund yields rose today to 2015 highs. The European Central Bank President Mario Draghi was rather calm about the sharp rise in yields, while some investors expected him to talk them down. In addition, the markets are cautiously optimistic about Greece hoping that it will strike a deal with its creditors. The nation’s Prime Minister Alexis Tsipras declared yesterday after talks with senior EU officials that Athens would make a payment due to the IMF on Friday. EUR/JPY reached levels above 140.00.

USD/JPY is fluctuating above 124.00. AUD/USD slid towards 0.7700. Australia’s retail sales showed zero growth in April, while its trade deficit widened to the record level. Weak data revived expectations of further easing of the Reserve Bank of Australia.

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