EURUSD Movement
For the 24 hours to 23:00 GMT, EUR advanced 0.83% against the USD and closed at 1.2813, after closely watched Spanish and Italian government debt auctions met strong investor demand at lower yields. The Euro also found support, after European Central Bank President, Mario Draghi, stated that policy makers have avoided a credit shortage and expressed his assurance about the effectiveness of the European bank’s long-term lending operations.
In the Euro-zone, on a seasonally adjusted basis, industrial output retreated 0.1% (MoM) in November, from an upwardly revised 0.3% (MoM) drop in October. The European Central Bank (ECB) kept its benchmark interest rate unchanged at 1.0%, in line with market expectations.
In Germany, the consumer price inflation stood at 2.1% (YoY) in December, unrevised from preliminary estimates and compared to a rate of 2.4% (YoY) in November. Additionally, the Consumer Price Index (CPI) rose 0.7% (MoM) in December.
In France, the consumer price inflation advanced 2.5% (YoY) in December, higher than the market expectation of a 2.3% (YoY) growth. Also, the current account deficit narrowed to €2.3 billion in November from €4.2 billion in October. The goods account deficit decreased to €4.7 billion in November, compared to €6.1 billion recorded in October.
In the Asian session, at GMT0400, the pair is trading at 1.2818, with the EUR trading 0.04% higher from yesterday’s close.
The pair is expected to find support at 1.2730, and a fall through could take it to the next support level of 1.2642. The pair is expected to find its first resistance at 1.2876, and a rise through could take it to the next resistance level of 1.2933.
Trading trends in the pair today are expected to be impacted by the release of Euro-zone’s trade balance and the US University of Michigan Confidence and the trade balance.
The currency pair is trading above its 20 Hr and its 50 Hr moving averages.
