EURUSD Movement
For the 24 hours to 23:00 GMT, EUR declined 0.12% against the USD and closed at 1.2907, as investors remained cautious as Hurricane Sandy hits the US North Eastern coast.
The Euro also remained under pressure amid growing doubts over whether Greece can meet austerity targets as coalition talks on the latest round of spending cuts remained deadlocked.
Yesterday, the European Central Bank Governing council member, Ewald Nowotny, stated that forgiving Greek debt is impossible for the central bank because it would mean the bank is indirectly financing governments. Separately, the German government spokesman, Steffen Seibert stated that a Greek debt restructuring program is out of the question.
Meanwhile, the Spanish Prime Minister, Mariano Rajoy stated that Spain still does not need a sovereign bailout, while one of his ministers announced that there are signs the country is emerging from the economic crisis.
On the other hand, former Italian Prime Minister Silvio Berlusconi, threatened to withdraw support for Italian Prime Minister Mario Monti’s government, saying its policies are deepening the country’s recession.
Meanwhile, on the economic front, German harmonized index of consumer prices (HICP) rose 2.1% (YoY) in October, unchanged from the growth seen in September. Additionally, retail sales in Spain slumped 10.9% (YoY) in September, compared to a 2.0% drop recorded in the previous month.
In the Asian session, at GMT0400, the pair is trading at 1.2904, with the EUR trading marginally lower from yesterday’s close.
The pair is expected to find support at 1.2881, and a fall through could take it to the next support level of 1.2859. The pair is expected to find its first resistance at 1.2931, and a rise through could take it to the next resistance level of 1.2957.
Trading trends in the pair today are expected to be determined by the release of unemployment report in Germany. Euro-zone’s consumer confidence, business climate, economic sentiment indicator, services sentiment and industrial confidence data are also likely to receive increased market attention.
The currency pair is trading in between its 20 Hr and 50 Hr moving averages.
