EUR/JPY rates are holding above key technical thresholds that would suggest a longer-term bullish outlook is appropriate. EUR/USD rates have broken their intrayearly downtrend and are pointing higher.
But each major EUR-cross has its own story to tell. EUR/GBP rates have lost ground for eight consecutive sessions, and nine of the past ten overall.
According to the IG Client Sentiment Index, EUR/GBP has a mixed bias, EUR/JPY has a bearish bias, and EUR/USD has a bullish bias.
Euro Not in Driver’s Seat
The Euro does not have a compelling narrative driving its price action at present time, and as a result it has ceded the role of lead player to other major currencies’ themes. For EUR/JPY, it has meant following the prevailing move in risk assets, mainly stock markets. For EUR/GBP, it has been about differentials in vaccination rates and expected rates of growth. For EUR/USD, all attention has been on the Fed’s balance sheet and the Biden fiscal stimulus package.
The ‘rising yields’ narrative is non-existent when it comes to a point of support for the Euro.
Recommended by Christopher Vecchio, CFA
Get Your Free EUR Forecast
Get My Guide
GERMAN BUND, JGB, UK GILT, & US TREASURY 10-YEAR YIELDS: WEEKLY CHART (February 2014 to February 2021) (CHART 1)
In recent weeks, we’ve seen developed markets bond yields surge higher…