EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose 0.14% against the USD and closed at 1.2268.
The US Dollar came under pressure amid growing speculation of monetary easing after retail sales in the US fell 0.5% (MoM) in June. The market had expected a 0.2% rise in June.
On the economic front, trade surplus in the Euro-zone, on a seasonally adjusted basis rose to €6.3 billion in May, while consumer price inflation remained steady at 2.4% in June. Separately, in Germany, the number of workers in the manufacturing sector rose 2.8% (YoY) to 5.2 million in May.
In a bond auction, France sold the maximum targeted €7.6 billion ($9.308 billion) in 12-week, 23-week and 49-week T-bills, all with yields of less than zero.
Meanwhile, the International Monetary Fund (IMF) cut its 2013 forecast for global economic growth to 3.9% from the 4.1% it projected in April and warned that the outlook could dim further if Euro-zone policymakers do not act to contain region’s debt crisis.
Late yesterday, Moody’s Investors Service cut its rating for 13 Italian banks by one to two notches, citing the weakened borrower standing of the Italian government.
In the Asian session, at GMT0300, the pair is trading at 1.2293, with the EUR trading 0.20% higher from yesterday’s close.
The pair is expected to find support at 1.2208, and a fall through could take it to the next support level of 1.2124. The pair is expected to find its first resistance at 1.2345, and a rise through could take it to the next resistance level of 1.2398.
Investors are waiting for Euro-zone and German ZEW survey economic sentiment data due out later today.
The currency pair is trading well above its 20 Hr and 50 Hr moving averages.
