EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose 0.51% against the USD and closed at 1.3229, as signs of headway in negotiations on the US fiscal cliff buoyed investor sentiment and amid encouraging US economic data. Meanwhile, S&P’s decision to upgrade Greece’s sovereign credit rating also gave the Euro a boost.
On the US economic font, the NAHB/Wells Fargo housing market index rose to a reading of 47.0 in December, following a revised reading of 45.0 in November. Meanwhile, the current account deficit narrowed to $107.5 billion in the Q3 FY2012, from the upwardly revised deficit of $118.1 billion in the Q2 FY2012.
However, the Dallas Federal Reserve President, Richard Fisher, stated that the US central bank’s bond buying programmes alone cannot help to bring down the unemployment rate in the US. He indicated that the US lawmakers should address the fiscal uncertainty which is keeping employers on the sidelines.
Separately, the Standard & Poor’s Ratings Services (S&P) raised its credit rating on Greece to “B-” from “Selective Default” with a “Stable” outlook, citing the recent completion of its bond buyback programme and strong determination of Euro-zone members to support Greece.
In the Asian session, at GMT0400, the pair is trading at 1.3249, with the EUR trading 0.15% higher from yesterday’s close.
The pair is expected to find support at 1.3185, and a fall through could take it to the next support level of 1.3121. The pair is expected to find its first resistance at 1.3285, and a rise through could take it to the next resistance level of 1.3320.
Trading trends in the pair today are expected to be determined by the release of current account and construction output data in the Euro-zone. Germany’s IFO business climate, current assessment and expectations are also awaited.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
