For the 24 hours to 23:00 GMT, EUR declined 0.12% against the USD and closed at 1.3303, as concern over economic recovery resurfaced after weak economic data from the Euro-zone. Additionally, the Head of sovereign ratings at Standard & Poor’s, Moritz Kraemer, stated that Greece would probably have to restructure its debt again.
In economic news, the economic sentiment indicator for Euro-zone slipped to 94.4 in March from 94.5 in February, while the regions consumer-confidence gauge declined to -19.1. Additionally, industrial confidence index fell to a reading of -7.2 in March compared to -5.7 in February. However, in Germany on a seasonally adjusted basis, the unemployment rate declined to 6.7% in March, from 6.8% in February.
Additionally, EUR was affected after Spanish workers called a nationwide strike over austerity measures ahead of the government’s presentation of its latest budget plans.
To add to concerns, Moody’s downgraded credit ratings of five Portuguese banks, citing concerns over deteriorating asset quality.
Further denting sentiment, Portugal’s central bank lowered its 2012 growth forecast from -3.1% to -3.4%, and stated that the economy would contract more than previously forecast in 2012 and would not grow next year as consumer spending drops and export growth eased.
Meanwhile, Atlanta Fed President, Dennis Lockhart stated that financial risks to the US economy from the European economic crisis have been reduced, though not completely receded.
In the Asian session, at GMT0300, the pair is trading at 1.3349, with the EUR trading 0.35% higher from yesterday’s close, amid prospects that European finance ministers would agree to increase rescue funds at the meeting later today.
The pair is expected to find support at 1.3281, and a fall through could take it to the next support level of 1.3213. The pair is expected to find its first resistance at 1.3388, and a rise through could take it to the next resistance level of 1.3428.
Trading trends in the pair today are expected to be determined by the release of German retail sales, French producer prices and Italian purchasing power index.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
