EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose 0.47% against the USD and closed at 1.3134, as better-than-expected US retail sales data, improved investors’ risk sentiment.
In the US, the retail sales rose 0.8% (MoM) in March, compared to 1.0% increase in previous month. Market had expected 0.3% increase in March. Additionally, trade surplus in the Euro-zone stood at €2.8 billion in February, compared with a revised €7.9 billion deficit in January. Market expected a surplus of €3.0 billion in February.
Meanwhile the speculation for European Central Bank intervention in Spanish bond market grew, while reports that European officials are prepared to ask the International Monetary Fund to bolster its financial arsenal to contain the crisis affected investor sentiment.
European Commission President, Jose Manuel Barroso, stated yesterday that he was “absolutely confident that Spain can meet its economic challenges.”
In the Asian session, at GMT0300, the pair is trading at 1.3117, with the EUR trading 0.14% lower from yesterday’s close.
The pair is expected to find support at 1.3025, and a fall through could take it to the next support level of 1.2934. The pair is expected to find its first resistance at 1.3178, and a rise through could take it to the next resistance level of 1.3240.
Trading trends in the pair today are expected to be determined by consumer price index (CPI) and ZEW survey – economic sentiment data release in Euro-zone.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
