EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose 0.42% against the USD and closed at 1.3066.
The US Dollar weakened on news of more monetary easing from the Federal Reserve. Moreover, the US House of Representatives Speaker, John Boehner stated that “serious differences” remain with President, Barack Obama in talks to avert the steep tax hikes and budget cuts set for the new year.
Additionally, the Euro received support amid comments from Silvio Berlusconi, who said that he would withdraw as a candidate in Italy’s coming election if outgoing Prime Minister, Mario Monti ran as the head of a “moderate” coalition.
On the other hand, in a bond auction, Italian Treasury sold the full-targeted amount of €6.5 billion worth of 12-month government bonds at an average yield of 1.456%, the lowest since March and down from 1.762% at a similar auction last month.
Meanwhile, in economic news, industrial output in the Euro-zone dropped 1.4% (MoM) in October, marking its second consecutive monthly decline. On a monthly basis, the consumer price index (CPI) in France dropped 0.2% in November, while German CPI fell 0.2% in November. Separately, the current account deficit in France narrowed to €2.8 billion in October, from a revised deficit of €3.4 billion recorded in September.
In the Asian session, at GMT0400, the pair is trading at 1.3084, with the EUR trading 0.14% higher from yesterday’s close.
In a noteworthy development, Reuters reported this morning that the finance ministers from the bloc have agreed to allow the ECB to supervise banks in the Euro-zone.
The pair is expected to find support at 1.3020, and a fall through could take it to the next support level of 1.2957. The pair is expected to find its first resistance at 1.3122, and a rise through could take it to the next resistance level of 1.3161.
Trading trends in the pair today are expected to be determined by the release of ECB monthly report and Italian Consumer Price Index data.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
