Surge in German Yields Push EUR/USD to Two Month High

The euro stood at two-month highs against the dollar and yen early on Friday, having rallied for a second session on the back of another surge in German yields as fears of deflation in Europe eased just a little.

The common currency last fetched $1.1215, not far from the overnight peak of $1.1267. It has clearly broken above its recent $1.0457-$1.10625 range and is on track to end the week up more than 3 percent.  The euro climbed as far as 134.515 yen, touched a three-week high of 73.35 pence. It scaled a seven-week peak of NZ$1.4769.

Bund yields jumped again on Thursday with the benchmark 10-year yield reaching 0.386 percent , up some 20 basis points in two days.

CNBC

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.