EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose 0.15% against the USD and closed at 1.2907.
Initially, the Euro advanced after Reuters reported that the Spanish government is ready to ask for an official bailout as soon as this weekend, but Germany has voiced reservations. However, gains were capped, after the Spanish Prime Minister, Mariano Rajoy, denied reports that the nation was planning an “imminent” demand for a sovereign bailout from the Euro-zone.
Moreover, Moody’s Investors Service stated that it would release the details of its ratings review on Spain later this month, as it was still assessing several factors, including the draft budget for 2013 and the nature and size of support mechanisms.
Meanwhile, Greece held a new round of talks with foreign lenders to bridge differences over €2 billion of disputed austerity cuts.
In economic news, the Euro-zone producer price index (PPI) rose 0.9% (MoM) in August, compared to a revised 0.3% rise in July. Additionally, the number of registered unemployed persons in Spain rose by 79,645 or 1.7% (MoM) in September.
In the Asian session, at GMT0300, the pair is trading at 1.2897, with the EUR trading 0.08% lower from yesterday’s close.
The pair is expected to find support at 1.2862, and a fall through could take it to the next support level of 1.2827. The pair is expected to find its first resistance at 1.2950, and a rise through could take it to the next resistance level of 1.3003.
Trading trends in the pair today are expected to be determined by the release of purchasing manager index services and retail sales data in the Euro-zone.
The currency pair is trading between its 20 Hr and 50 Hr moving averages.
