EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose 0.34% against the USD and closed at 1.3395, as investors ditched the safe haven greenback and opted for the higher yielding single currency after the German and the Euro-zone’s economic sentiment indexes data beat market expectations.
In Germany, the ZEW indicator of economic sentiment advanced to a reading of 48.2 in February, surpassing the forecast for a reading of 35.0 and the previous month’s reading of 31.5, while Euro-zone’s economic expectations index rose to a reading of 42.4 in February, from a reading of 31.2 in January. Market had expected a rise to 35.5.
However, the current situation index in Germany fell to 5.2 in February, from 7.1 in January, and against the expectations for an increase to 9.0. Also, Euro-zone’s annual construction production declined 4.8% in December, following a 4.7% drop recorded in November.
Separately, in France, Foreign Minister, Laurent Fabius stated that the French government would likely cut its growth forecast for the economy to 0.2-0.3% in 2013, from 0.8% estimated earlier.
On the US economic front, the NAHB/Wells Fargo Housing Market Index fell to a reading of 46.0 in February, from a reading of 47.0 in January. Market had expected the index to climb to a reading of 48.0 in February.
In the Asian session, at GMT0400, the pair is trading at 1.3414, with the EUR trading 0.14% higher from yesterday’s close.
The pair is expected to find support at 1.3350, and a fall through could take it to the next support level of 1.3287. The pair is expected to find its first resistance at 1.3456, and a rise through could take it to the next resistance level of 1.3499.
Later today, the Germany’s harmonised index of consumer prices, the consumer price index and producer price index are scheduled for release, while in France the business climate and consumer price index data and Euro-zone consumer confidence data are awaited. Separately, in the US, the producer price index data and the FOMC minutes are likely to receive increased market attention.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
