EURUSD Movement
For the 24 hours to 23:00 GMT, EUR declined 0.14% against the USD and closed at 1.2474, as hopes that European leaders would make progress on dealing with the debt crisis in the Euro area faded, after German Chancellor, Angela Merkel reiterated her opposition to the idea of joint euro zone bonds. She also added that euro bonds, euro bills and debt redemption funds are unconstitutional in Germany.
The Euro came under further pressure following Italian bond auction as the nation’s treasury sold €9 billion in six-month government bonds at an average yield of 2.95%, up from 2.10% at an auction in May, and highest since December 2011.
Intensifying concerns further, the Bank of Spain, in its monthly bulletin, reported that the recession in Spain would intensify in the second quarter of 2012.
In economic news, in Germany, the import prices retreated 0.7% (MoM) in May, compared to a 0.5% drop in April. Additionally, consumer price index rose 1.7% (YoY) in June, against the market expectation of 1.8% rise. Meanwhile, in Italy, business confidence unexpectedly rose to 88.9 in June, against the expectation to fall to 85.5.
In the Asian session, at GMT0300, the pair is trading at 1.2490, with the EUR trading 0.13% higher from yesterday’s close.
The pair is expected to find support at 1.2454, and a fall through could take it to the next support level of 1.2419. The pair is expected to find its first resistance at 1.2517, and a rise through could take it to the next resistance level of 1.2545.
Trading trends in the pair today are expected to be determined by the release of German unemployment change and consumer confidence, business climate and industrial confidence in the Euro-zone.
The currency pair is trading just above its 20 Hr and 50 Hr moving averages.
