EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose 0.42% against the USD and closed at 1.2565.
The US Dollar fell after the nations’ retail sales hit their worst level in two years in May, fueling speculation that the Federal Reserve might take further stimulus measures at its policy meeting next week to support the US economy.
Meanwhile, in Greece, Syriza leader, Alexander Tsipras, stated that he believes he can work out way to keep bailout money flowing while ending austerity measures imposed on the country.
However, the Euro came under pressure after Moody’s Investors Service cut its rating on Spanish government debt by three notches to ‘Baa3’ from ‘A3’.
In a bond auction, the Italian Treasury raised the full targeted amount of €6.5 billion worth of 12-month government bonds at an average yield of 3.972%, the highest since December and up sharply from 2.340% at a similar auction last month. Separately, Germany sold €4.024 billion of 10-year bunds at an average yield of 1.52%, up from a rate of 1.47% on May 16.
In economic news, Euro-zone industrial production fell less-than-expected by 2.3% (YoY) in April, against the market expectation of a 2.7% fall.
Separately, German consumer price index declined 0.2% (MoM) in May. Additionally, in France, the consumer price index declined 0.1% (MoM) in May, while current account deficit narrowed to €4.2 billion in April.
In the Asian session, at GMT0300, the pair is trading at 1.2567, with the EUR trading marginally higher from yesterday’s close.
The pair is expected to find support at 1.2491, and a fall through could take it to the next support level of 1.2414. The pair is expected to find its first resistance at 1.2627, and a rise through could take it to the next resistance level of 1.2687.
Trading trends in the pair today are expected to be determined by the Germany wholesale price index, Euro-zone consumer price index and European Central Bank (ECB) monthly report.
The currency pair is trading just above its 20 Hr moving average and well above its 50 Hr moving average.
