EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose 0.74% against the USD and closed at 1.2683, after European Union (EU) officials signaled that they might be willing to soften the austerity measures imposed to Greece, a move aimed at keeping the nation in the Euro-zone.
The Euro also received support, on optimism that Greece’s New Democracy party would form a coalition government with the socialist Pasok party. The single currency also received support as EU leaders at the G20 meeting vowed to come together to consolidate the financial system in the bloc.
In a bond auction, Spanish treasury sold €2.4 billion worth of 12-month government bonds at an average yield of 5.074% most since December 2011. It also sold €64 million of 18-month debt at 5.107%, compared with 3.302% in May. Moreover, Greece sold €1.3 billion ($1.64 billion) of three-month T-bills with yield slightly easing to 4.31% from 4.34% in the previous auction.
In economic news, Euro-zone economic sentiment index fell to a reading of -20.1 in June, compared to a level of -2.4 in May. Additionally, on a seasonally adjusted monthly basis, the construction output in Euro-zone fell 2.7% in April.
Separately, in Germany, the ZEW Survey economic sentiment index fell to a reading of -16.9 points in June, compared to a level of 10.8 posted in May. Meanwhile, current situation index declined to a level of 33.2 in June. Moreover, in France, the business sentiment index fell to a reading of 92.0 in June, compared to a reading of 93.0 posted in previous month.
In the Asian session, at GMT0300, the pair is trading at 1.2675, with the EUR trading 0.06% lower from yesterday’s close.
The pair is expected to find support at 1.2586, and a fall through could take it to the next support level of 1.2497. The pair is expected to find its first resistance at 1.2748, and a rise through could take it to the next resistance level of 1.2820.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
