EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose 0.31% against the USD and closed at 1.2512. The USD declined, after Federal Reserve member, Charles Evans, stated that he would support more measures to stimulate the US economy.
Initially, the Euro came under pressure after Spain’s borrowing costs jumped to a 15-year high and Fitch Ratings stated that Spanish Prime Minister, Mariano Rajoy would miss budget-deficit targets.
Adding to concerns, Fitch Ratings downgraded its rating on 18 Spanish banks, citing concerns over further loan deterioration.
Meanwhile, on the economic front, non-farm payrolls in France climbed 0.1% in first quarter of 2012, in line with market expectations and compared to a 0.1% fall in the previous quarter.
In the Asian session, at GMT0300, the pair is trading at 1.2485, with the EUR trading 0.22% lower from yesterday’s close.
The pair is expected to find support at 1.2442, and a fall through could take it to the next support level of 1.2400. The pair is expected to find its first resistance at 1.2528, and a rise through could take it to the next resistance level of 1.2572.
Trading trends in the pair today are expected to be determined by the release of German consumer price index (CPI) and Euro-zone industrial production.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
