EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose 0.10% against the USD and closed at 1.2951, as risk appetite increased amongst investors, after US House Speaker, John Boehner indicated that he was optimistic that a deal can be reached with President Barack Obama to avert the fiscal cliff.
The US Commerce Department reported that new home sales fell by 0.3% to a seasonally adjusted 368,000 units in October, confounding expectations for an increase to 390,000. Additionally, the Federal Reserve in its Beige Book survey of regional economies indicated that the US economy has expanded at a “measured pace” in recent weeks. It revealed that manufacturing activity in most of the US districts has either slowed down or has shown outright contraction. However, the survey revealed that the consumer spending and home sales have improved at a moderate pace in most districts.
Elsewhere, Euro-zone’s broad monetary aggregate M3 grew 3.9% (YoY) in October, from a 2.6% rise in September, while Spanish retail sales dropped 9.7% (YoY) in October, from a revised 11.0% drop registered in the previous month.
In Germany, the harmonized index of consumer prices rose 2.0% annually in November, following a 2.1% rise recorded in October. Meanwhile, the consumer price index rose 1.9% (YoY) in November, after rising 2.0% in October.
In the Asian session, at GMT0400, the pair is trading at 1.2950, with the EUR trading flat from yesterday’s close.
The pair is expected to find support at 1.2900, and a fall through could take it to the next support level of 1.2849. The pair is expected to find its first resistance at 1.2981, and a rise through could take it to the next resistance level of 1.3012.
Trading trends in the pair today are expected to be determined by the release of unemployment change and rate data in Germany and Euro-zone’s consumer confidence, industrial confidence and services sentiment data.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
