EURUSD Movement
For the 24 hours to 23:00 GMT, EUR declined 0.63% against the USD and closed at 1.2578, amid dismal economic data from the Euro-zone and after Finland & the Netherland reiterated their opposition to using Euro-zone bailout funds to purchase government bonds.
In the Euro-zone, Markit’s manufacturing purchasing manager index (PMI) stood flat at 45.1 in June, holding at its lowest reading since June 2009. Separately, the unemployment rate rose to 11.1% in May, while employment index fell to 46.7 in June, at the fastest rate in two-and-a-half years. Meanwhile, German manufacturing PMI fell to a reading of 45.0 in June, while in France manufacturing PMI eased to a reading of 45.2 in June.
Meanwhile, news that Finland and the Netherland’s reiterated their opposition to using Euro-zone bailout funds to purchase government bonds, also weighed on the Euro.
In a short-term debt auction, France sold €1.796 billion of the 51-week paper at a record low yield of 0.163%, down from 0.177% at a previous auction last Monday.
In the Asian session, at GMT0300, the pair is trading at 1.2595, with the EUR trading 0.14% higher from yesterday’s close.
The pair is expected to find support at 1.2553, and a fall through could take it to the next support level of 1.2510. The pair is expected to find its first resistance at 1.2653, and a rise through could take it to the next resistance level of 1.2710.
Trading trends in the pair today are expected to be determined by the release of Euro-Zone producer price index.
The currency pair is showing convergence with its 20 Hr moving average and trading below its 50 Hr moving average.
