EURUSD Movement
For the 24 hours to 23:00 GMT, EUR declined marginally against the USD and closed at 1.3031, after the European Central bank council member, Jens Weidmann stated that inflationary pressures across the Euro-zone remain light, which investors interpreted as a sign that a policy loosening may approaching.
Moreover, the single currency was further pressured by a lackluster European economic data. Germany whole sales price index in Germany rose 0.1% (MoM) in February, less than the expected 0.3% rise, while the harmonized index of consumer prices climbed 1.8% in February, lower than the 1.9% rise recorded in January. Also, the seasonally adjusted current account deficit in France widened to €5.0 billion in January, following a revised €3.8 billion deficit registered in the previous month.
In the Asian session, at GMT0400, the pair is trading at 1.3036, with the EUR trading marginally higher from yesterday’s close.
The pair is expected to find support at 1.2993, and a fall through could take it to the next support level of 1.2950. The pair is expected to find its first resistance at 1.3077, and a rise through could take it to the next resistance level of 1.3118.
Euro-zone’s industrial production data scheduled for release later today is one of the important releases eyed by investors who speculate a drop in January. Meanwhile, later today Italy is to hold an auction of 3-year government bonds.
The currency pair is trading just above its 20 Hr and 50 Hr moving averages.
