EURUSD Movement
For the 24 hours to 23:00 GMT on Friday, EUR declined 0.78% against the USD and closed at 1.2291, as risk aversion grew among investors following weak US jobs data and political disparity among Euro-zone nations.
The US Bureau of Labor Statistics reported that 80,000 nonfarm payrolls were created in June, below the market expectations of 90,000 net jobs.
Adding to the gloom, Finland Finance Minister, Jutta Urpilainen, stated that nation would consider leaving the Euro-zone instead of agreeing to help handle the debt of other countries. Separately, the yield on Spanish benchmark 10-year bond rose above the 7% level.
On the economic front, German industrial production rose better-than-expected by 1.6% (MoM) in May, led by strong activity in the construction sector. Additionally, in Spain, industrial production fell 6.1% (YoY) in May, for the ninth consecutive month. In France, trade deficit decreased to €5.33 billion in June, from €5.77 billion in April.
Moreover, the International Monetary Fund, Managing Director, Christine Lagarde, stated that fund is likely to cut its world-growth estimate this year, with warning that outlook has “regrettably become more worrisome”.
In the Asian session, at GMT0300, the pair is trading at 1.2289, with the EUR trading flat from Friday’s close.
The pair is expected to find support at 1.2229, and a fall through could take it to the next support level of 1.2170. The pair is expected to find its first resistance at 1.2375, and a rise through could take it to the next resistance level of 1.2462.
In a day ahead, Euro-zone Sentix investor confidence is expected to remain in negative territory at -25.8 in July. The pair is also expected to take cues from the release of German current account and trade balance data.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
