EURUSD Movement
For the 24 hours to 23:00 GMT, EUR declined 1.21% against the USD and closed at 1.3025. The USD gained after minutes from the December FOMC meeting indicated that most members saw an end to QE this year. Several members backed slowing or stopping purchases well before the end of 2013 while a “few” members stated that asset purchases would likely be warranted until about the end of 2013.
Meanwhile on the data front, on a seasonally adjusted basis, the number of unemployed people in Germany rose by 3,000 in December, following a 5,000 increase recorded in the previous month, and against the expectation of number of people unemployed to rise by 11,000 in December. Additionally, the M3 money supply in the Euro-zone increased 3.8% (YoY) in November, in line with the market expectations and following a 3.9% rise recorded in October.
In the Asian session, at GMT0400, the pair is trading at 1.3033, with the EUR trading 0.07% higher from yesterday’s close.
The pair is expected to find support at 1.2979, and a fall through could take it to the next support level of 1.2924. The pair is expected to find its first resistance at 1.3129, and a rise through could take it to the next resistance level of 1.3225.
Trading trends in the pair today are expected to be determined by the release of purchasing managers’ index (PMI) services in France, Germany and Euro-zone. Additionally, consumer price index in Italy and Euro-zone are also likely to generate some market interest.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
