EURUSD Movement
For the 24 hours to 23:00 GMT, EUR declined 0.62% against the USD and closed at 1.3154, as investor sentiment were dented after manufacturing PMI in France, Germany and the Euro-zone disappointed markets. Another set of data released yesterday indicated that unemployment rate in the Euro-zone increased to new record high in March.
The Euro-zone manufacturing PMI fell to a reading of 45.9 from 47.7 in March and was below an earlier estimate of 46.0. Additionally, German manufacturing PMI fell to a 33-month low at 46.2.
In Italy, official data showed that the unemployment rate unexpectedly jumped to 9.8% for March, the highest level since the current index began in 2004, from 9.3% the previous month.
The ratings agency, Standard and Poor’s yesterday raised its long-term foreign and local currency debt ratings on Greece to ‘CCC/C’ from ‘Selective Default’ following the completion of the “distressed” debt exchange. It further kept the outlook on the long-term rating at ‘Stable’, citing government’s stated commitment to improve its fiscal track record.
In the Asian session, at GMT0300, the pair is trading at 1.3141, with the EUR trading 0.10% lower from yesterday’s close.
The pair is expected to find support at 1.3098, and a fall through could take it to the next support level of 1.3055. The pair is expected to find its first resistance at 1.3209, and a rise through could take it to the next resistance level of 1.3277.
The European Central Bank (ECB) interest rate decision is likely to receive increased market attention along with other economic release in Euro-zone to be released later today.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
