EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose 0.38% against the USD and closed at 1.3071, after Spanish regional election results indicated support for the austerity policies of Prime Minister, Mariano Rajoy.
On Sunday, the Spanish Prime Minister, Mariano Rajoy won elections in his home region of Galicia, a boost for his austerity-focused government that removed a potential obstacle to him asking for a bailout.
Adding to the positive sentiment, the European Commission stated that it hopes Greece and its international creditors would reach an agreement within next few days to get its next tranche of bailout funds.
The Euro was also buoyed after the European Central Bank (ECB) Executive Board member, Joerg Asmussen, stated that the ECB would do everything it can to show that the Euro is irreversible.
According to a survey by the Conference Board, the leading economic index in Germany declined 0.3% (MoM) to 102.3 in August, after a 0.2% fall in the previous month.
In the Asian session, at GMT0300, the pair is trading at 1.3053, with the EUR trading 0.13% lower from yesterday’s close, after Moody’s Investors Service lowered its rating on Catalonia and four other Spanish regions.
The pair is expected to find support at 1.3024, and a fall through could take it to the next support level of 1.2995. The pair is expected to find its first resistance at 1.3083, and a rise through could take it to the next resistance level of 1.3113.
Trading trends in the pair today are expected to be determined by the release of business climate in France and Euro-zone’s consumer confidence.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
