EURUSD Movement
For the 24 hours to 23:00 GMT, EUR declined 0.99% against the USD and closed at 1.2892, after the European Central Bank (ECB) President, Mario Draghi stated that the bank expects the key lending rates to remain at present level or lower levels for an extended period of time.
Draghi also indicated that risks to growth in the Euro-zone remain “on the downside” and added that monetary policy would remain accommodative for as long as is necessary.
These comments came after the ECB, its latest policy meeting, maintained its benchmark interest rate unchanged at 0.5%, in line with the market expectations. Separately, Euro-zone’s gross domestic product fell 0.3% (QoQ) in the Q1 2013.
The International Monetary Fund lowered its growth forecast for Italy, with now expecting the economy to contract by 1.8% for 2013, from an earlier forecast for 1.5% shrinkage.
In the Asian session, at GMT0300, the pair is trading at 1.2899, with the EUR trading marginally higher from yesterday’s close.
The pair is expected to find support at 1.2848, and a fall through could take it to the next support level of 1.2797. The pair is expected to find its first resistance at 1.2984, and a rise through could take it to the next resistance level of 1.3069.
On the economic landscape later today, investors anticipate a positive monthly German factory orders reading in May, meanwhile French trade balance is forecast to register a wider deficit in May.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
