EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose 0.58% against the USD and closed at 1.3012, after the release of upbeat Euro-zone and German economic sentiment data. Moreover, speculation that the Federal Reserve could signal more aggressive quantitative easing in the near term further led the USD to weaken.
The European Commission Vice-President and Commissioner for Economic and Monetary Affairs, Olli Rehn has applauded Euro-zone austerity measures and the ‘tangible’ progress achieved, but insists that the region must ‘stay the course’ in the implementation of convincing programmes.
Separately, a government official stated that Greece drew enough bonds to its buyback of sovereign debt to meet a goal that is crucial to unlocking aid from the International Monetary Fund and European Union.
In economic news, the ZEW economic expectations index in the Euro-zone rose to a reading of 7.6 in December from a reading of -2.6 recorded in November. Additionally, ZEW economic expectations index in Germany rose sharply to a reading of 6.9 in December, marking its first positive reading since May 2012. On an annual basis, the wholesale price index in Germany rose 3.2% in November, compared to a 4.6% growth recorded in October.
In the Asian session, at GMT0400, the pair is trading at 1.2997, with the EUR trading 0.11% lower from yesterday’s close.
The pair is expected to find support at 1.2946, and a fall through could take it to the next support level of 1.2895. The pair is expected to find its first resistance at 1.3031, and a rise through could take it to the next resistance level of 1.3066.
Trading trends in the pair today are expected to be determined by the release of German consumer price index and Euro-zone industrial production data.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
