EURUSD Movement
For the 24 hours to 23:00 GMT, EUR declined 0.23% against the USD and closed at 1.3087.
Yesterday, the European Central Bank (ECB) in its latest monthly economic report indicated that it sees key interest rates at present or lower level for an extended period, which does not specify an end-date.
In economic news, the wholesale price index in Germany fell 0.4% (MoM) in June, while the French consumer price index harmonised across the EU countries rose 0.2% (MoM) in June.
Meanwhile, in the US, initial jobless claims climbed to 360K in the week ended 06 July 2013, higher than the expected drop to 340K. Separately, the import and export prices dropped in June, while the US government recorded a budget surplus of $116.5 billion in June.
In the Asian session, at GMT0300, the pair is trading at 1.3083, with the EUR trading marginally lower from yesterday’s close.
This morning, the European Central Bank (ECB) Vice-President, Vitor Constancio, stated that the Euro-zone is likely to see an extended period of slow economic growth and the ECB must stay accommodative for a long period.
The pair is expected to find support at 1.3009, and a fall through could take it to the next support level of 1.2936. The pair is expected to find its first resistance at 1.3152, and a rise through could take it to the next resistance level of 1.3222.
In the day ahead, investors await consumer price index data due in Spain and Italy which is expected to rise in the June. Separately, industrial production data scheduled for release in the Euro-zone is anticipated to register a drop in May.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
