EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose 0.23% against the USD and closed at 1.2849, after the International Monetary Fund (IMF) announced that it would contribute around €1 billion ($1.3 billion) to Cyprus, as part of the €10 billion rescue package it agreed late in March. The IMF’s Managing Director, Christine Lagarde, stated that the fund would support Cyprus through a three-year loan that aims to help the nation to consolidate its national finance as well as restructure its bubbled banking sector.
On the economic front, Euro-zone’s annual consumer price inflation slowed to 1.7% in March, in line with market expectations and compared to a rate of 1.8% in February.
Moreover, the greenback was pressured yesterday, after service-sector and jobs reports data in the US came in below market expectations. The Institute for Supply Management (ISM) reported that its non-manufacturing purchasing managers’ index (PMI) retreated to a reading of 54.4 in March, against the expected reading of 55.6 in March, while the Automatic Data Processing, Inc (ADP) private sector employment climbed by 158.0K in March, lower than the expected increase by 200.0K in March.
In the Asian session, at GMT0300, the pair is trading at 1.2848, with the EUR trading marginally lower from yesterday’s close.
The pair is expected to find support at 1.2803, and a fall through could take it to the next support level of 1.2758. The pair is expected to find its first resistance at 1.2879, and a rise through could take it to the next resistance level of 1.2910.
Going forward today, investors have their plate full with a raft of economic data scheduled for release from the Europe. Traders also await the outcome of the European Central Bank policy decision today.
The currency pair is showing convergence with its 20 Hr moving average and is trading just above its 50 Hr moving average.
