EURUSD Movement
For the 24 hours to 23:00 GMT, EUR declined 0.05% against the USD and closed at 1.2245.
The greenback rose after Federal Reserve in its minutes of its latest monetary policy meeting gave no hint to stimulate the US economy, stating that the US economy had continued to expand during the period since its April 2012 meeting.
Sentiment on the Euro remained fragile, after the German Constitutional Court indicated that it would require more time on delivering its decision on the German approval of the ESM and fiscal pact, potentially further delaying the region’s bailout fund from coming into force. Meanwhile, the Spain unveiled new austerity measures designed to cut €65 billion ($79.7 billion) from the public deficit by 2014.
In a bond auction, Germany sold €4.153 billion ($5.103 billion) July 2022 bund at an average yield of 1.31%, below the 1.52% at the previous auction June 13.
On the economic front, German consumer price index fell 0.1% (MoM) in June, in line with market expectations. Additionally, the current account deficit in France narrowed to €4.1 billion in May, compared to a deficit of €4.4 billion in April.
In the Asian session, at GMT0300, the pair is trading at 1.2241, with the EUR trading flat from yesterday’s close.
The pair is expected to find support at 1.2204, and a fall through could take it to the next support level of 1.2166. The pair is expected to find its first resistance at 1.2288, and a rise through could take it to the next resistance level of 1.2334.
Trading trends in the pair today are expected to be determined by the release of Euro-Zone industrial production and German wholesale price index. Investors are also awaiting European Central Bank (ECB) July monthly report and ECB President, Mario Draghi, speech due out later today.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
