EURUSD Movement
For the 24 hours to 23:00 GMT, EUR declined 0.35% against the USD and closed at 1.3154, on a downbeat Euro-zone economic data. Euro was also pressurized by political uncertainty in Netherlands and France.
Separately, Bank of Spain stated that Spanish economy has slipped back into recession in the first quarter of 2012, raising concerns that Spain would fail to meet the deficit targets, forcing the government to seek an international bailout.
In Germany, the manufacturing purchasing managers’ index (PMI) declined to 46.3 in April, from 48.4 in March. Market had expected the manufacturing PMI to rise to 49.0 in April. The services PMI rose marginally to 52.6 in April, from 52.1 in March. Market had expected the services PMI to rise to 52.3 in April. The leading economic index in Germany increased 0.4% (MoM) to 104.5 in February. Meanwhile, the coincident index fell 0.1% sequentially to 106.8 in February.
In Euro-zone, the manufacturing purchasing managers’ index (PMI) fell to 46.0 in April, following a reading of 47.7 in March. Market had expected it to rise to 48.1 in April.
The services PMI fell to 47.9 in April, from 49.2 in March. Market had expected it to rise to 49.4 in April. The Euro-zone government debt climbed to 87.2% of gross domestic product (GDP) in 2011, from 85.3% registered in 2010.
In the Asian session, at GMT0300, the pair is trading at 1.3153, with the EUR trading marginally lower from yesterday’s close.
The pair is expected to find support at 1.3106, and a fall through could take it to the next support level of 1.3059. The pair is expected to find its first resistance at 1.3199, and a rise through could take it to the next resistance level of 1.3245.
The currency pair is trading between its 20 Hr and 50 Hr moving averages.
