The pair trended higher throughout the session as market participants reacted to the reports by the Telegraph, which noted that Germany will support ECB’s bond buying plan even though the domestic central bank remains very critical of such measures. In turn, peripheral bond yield spreads continued to ease on speculation that it is only a matter of time that the central bank begins to purchase bonds. Still, it is worth remembering that the government in Spain is yet to agree to any external aid and it remains to be seen whether the government will agree to a full scale bailout. In terms of technical levels, supports are seen at 1.2342, 1.2295 and then at 1.2288. On the other hand, resistance levels are seen at 1.2501/16 and then at 1.2539.
The pair settled the session higher and trended in tandem with its counterpart EUR/USD, which benefited from the reports that Germany remains supportive of ECB’s bond buying plan. Today’s release of the latest Public Finances data failed to have any effect on the currency. The report revealed lower tax receipts, mostly from the oil sector, which were driven by the repairs of the Elgin plant. In terms of technical levels, supports are seen at 1.5706, 1.5678 and then at 1.5636. On the other hand, resistance levels are seen at 1.572/87 and then at 1.5850.
In spite of the broad risk on sentiment trade, the pair settled the session little changed, as the prospect of a weaker USD, which may prompt another leg lower by the pair, was offset by the speculation of more policy easing by the BoJ. In terms of technical levels, supports are seen at 79.24/00 and then at 78.92. On the other hand, resistance levels are seen at 79.50/66 and then at 79.97.