EURUSD Movement
For the 24 hours to 23:00 GMT on Friday, EUR rose 0.19% against the USD and closed at 1.2303, amid talks of stronger action by the European Central Bank (ECB) and Euro-zone goverments to stem Europe’s sovereign debt crisis.
The Euro also received support as Italy raised €8.5 billion from its 6-month bill auction with yield falling to 2.454 % from 2.957% at the last issue on June 27, following an ECB’s pledge to do everything to save the Euro.
Meawhile, news from French newspaper, Le Monde that the ECB is preparing to purchase Italian and Spanish bonds in the secondary market also supported the Euro.
Separately, Euro-group head, Jean-Claude Juncker stated that Euro-zone is at a decisive point and leaders would decide in the next few days on how to tackle rising Spanish bond yield.
On the economic front, annual inflation in Germany remained at an 18-month low of 1.7% in July, unchanged from June. Separately, the consumer sentiment index in France declined to a reading of 87.0 in July, from the revised reading of 89.0 in the preceding month. In Spain, the unemployment rate rose to 24.63% in the June quarter, from 24.44% in the first quarter. The Italian business confidence declined more-than-expected to a reading of 87.1 in July.
Over the weekend, German government officials stated that Chancellor, Angela Merkel and Italian Premier, Mario Monti “agreed that Germany and Italy would do everything to protect the Euro-zone.”
In the Asian session, at GMT0300, the pair is trading at 1.2289, with the EUR trading 0.11% lower from Friday’s close.
The pair is expected to find support at 1.2224, and a fall through could take it to the next support level of 1.2159. The pair is expected to find its first resistance at 1.2372, and a rise through could take it to the next resistance level of 1.2455.
Trading trends in the pair today are expected to be determined by the release of Spanish gross domestic product and Euro-zone consumer confidence data.
The currency pair is trading between its 20 Hr and 50 Hr moving average.
