EURUSD Movement
For the 24 hours to 23:00 GMT on Friday, EUR declined 0.21% against the USD and closed at 1.2331.
The US dollar rose against the Euro after the Thomson Reuters/University of Michigan preliminary consumer sentiment index for August hit its highest level since May at 73.6.
On Friday, the Spanish government indicated that it would soon request a first payment for its deeply troubled banks from an emergency Euro-zone rescue line.
Separately, Austria’s Foreign Minister, Michael Spindelegger, stated that countries that fail to keep their financial promises should be thrown out of the Euro-zone.
Meanwhile Finnish Foreign Minister, Erkki Tuomioja, stated that nation is preparing for a potential break-up of the single currency block. However, following his comments, nation’s European Affairs minister, Alexander Stubb, clarified that nation is “100% committed” to the Euro.
On the economic front, on a seasonally adjusted basis, current account surplus in the Euro-zone widened to €12.7 billion in June, compared to a revised €10.3 billion surplus in May. Separately, annual producer price inflation in Germany eased to 0.9% in July, from 1.6% in June, while in France the leading economic index retreated 0.3% sequentially to 113.0 in June.
Over the weekend, German magazine, Der Spiegel reported that Greece would likely need €14 billion over the next two years to get its deficit below 3% by the end of 2014, up from a previously expected €11.5 billion, citing an interim report by the Troika of European Commission, European Central Bank and International Monetary Fund,
Moreover, Luxembourg’s Prime Minister and Euro group President, Jean-Claude Juncker, stated Greece would not leave the Euro-zone unless the nation violates all the conditions of budget consolidation and structural reforms and keeps to no agreements.
In Germany, Finance Minister, Wolfgang Schaeuble, stated there were limits to the aid that could be granted to Greece and added that the crisis-stricken country should not expect to be granted another programme.
Yesterday, the Greece Finance Minister, Yannis Stournaras, stated that nation must remain in the Euro-zone, because that is the only choice that can protect nation from poverty.
In the Asian session, at GMT0300, the pair is trading at 1.2336, with the EUR trading marginally higher from Friday’s close, as European leaders meet this week to discuss ways to combat the region’s debt crisis.
The pair is expected to find support at 1.2289, and a fall through could take it to the next support level of 1.2243. The pair is expected to find its first resistance at 1.2382, and a rise through could take it to the next resistance level of 1.2429.
Investors are eyeing construction output data in the Euro-zone, later in a day.
The currency pair is trading just above its 20 Hr and 50 Hr moving averages.
