EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose 0.34% against the USD and closed at 1.3120, as concerns over the handling of Spain’s financial crisis slightly eased after an upbeat comment by country’s Prime Minister, Mariano Rajoy. Additionally, European Central Bank (ECB) member, Benoit Coeure, signaled that the bank may purchase Spanish bonds to reduce borrowing costs, boosting investor risk appetite.
The Spanish Prime Minister stated the country would not require a bailout and that the Spain’s deficit target remains “unconditional.” He added that the government would push forward the program to tackle tax and employment fraud this month, as well as reforms in the banking and healthcare systems and privatizations of public sector assets.
On the economic front, the Federal Statistical Office showed that Germany’s wholesale price inflation slowed for the second consecutive month in March. The Wholesale Price Index increased 2.2% on an annual basis in March, slower than the 2.6% growth seen in February.
In the Asian session, at GMT0300, the pair is trading at 1.3137, with the EUR trading 0.12% higher from yesterday’s close.
The pair is expected to find support at 1.3090, and a fall through could take it to the next support level of 1.3043. The pair is expected to find its first resistance at 1.3170, and a rise through could take it to the next resistance level of 1.3204.
European Central Bank (ECB) monthly report is likely to receive increased market attention, along with Euro-zone’s industrial production data due to be released later today.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
