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15 May 2015
German yields may have peaked for now – RBS
FXStreet (Mumbai) - Both the German bund yields and the euro may have found their near-term highs for the time-being, as the bund yields have hit their mid-term resistance level, explains Greg Gibbs of RBS.
Gibbs also suggested that the euro may not swing above the $1.1450 level against the dollar in the near term, as it is the currency's resistance zone - touched around the same time, when German bund yields attacked their resistance level on Thursday.
Key Quotes:
"Perhaps yields in Germany have reached their high for the time being, if not for quite some time,"
“The euro has risen above the recent peak made last week, again trading into the consolidation zone made in February after the January 22, ECB QE announcement, and exhibiting a rising trend, perhaps at the top of a rising channel at the moment that could tend to control its rise."
Gibbs also suggested that the euro may not swing above the $1.1450 level against the dollar in the near term, as it is the currency's resistance zone - touched around the same time, when German bund yields attacked their resistance level on Thursday.
Key Quotes:
"Perhaps yields in Germany have reached their high for the time being, if not for quite some time,"
“The euro has risen above the recent peak made last week, again trading into the consolidation zone made in February after the January 22, ECB QE announcement, and exhibiting a rising trend, perhaps at the top of a rising channel at the moment that could tend to control its rise."