EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose 0.34% against the USD and closed at 1.2849.
Over the weekend, the Cypriot central bank confirmed that major depositors in Cyprus’s biggest bank would lose around 60% of savings over €100,000, a significantly greater loss than the original 30% or 40% that had been discussed.
Meanwhile, the Italian President, Giorgio Napolitano, renewed his efforts to form a government by naming a group of 10 “wise men” to tackle the political deadlock that has gripped Italy since last month’s inconclusive general election.
Yesterday, in the US, the Institute for Supply Management (ISM) manufacturing purchasing managers’ index (PMI) dropped to a reading of 51.3 in March, from a reading of 54.2 registered in the previous month. Additionally, the ISM prices index decreased significantly to a level of 54.5 in March from a reading 61.5 recorded in February. Meanwhile, construction spending rose 1.2% (MoM) to $885.1 billion annualized rate in February, from a 2.1% fall recorded in the previous month. Moreover, the final US manufacturing PMI was revised lower to a reading of 54.6 in March from a flash estimate of 54.9 and compared to a level of 54.3 in February.
In the Asian session, at GMT0300, the pair is trading at 1.2868, with the EUR trading 0.15% higher from yesterday’s close.
The pair is expected to find support at 1.2802, and a fall through could take it to the next support level of 1.2735. The pair is expected to find its first resistance at 1.2907, and a rise through could take it to the next resistance level of 1.2945.
Later today, manufacturing PMI is slated for release in Germany, France, Italy and the Euro-zone, however it is the German CPI and harmonised CPI that is likely to receive increased market attention.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
