EURUSD Movement
For the 24 hours to 23:00 GMT, EUR strengthened 0.23% against the USD and closed at 1.3222. The greenback came under pressure, after weak manufacturing and home sales data from the US re-ignited expectations that the Federal Reserve would keep stimulus program intact for longer period.
Sentiment towards the Euro also improved after the French Finance Minister, Pierre Moscovici, stated that the country was out of recession, following the forecasts from the Bank of France and INSEE that the French economy grew 0.2% in the second quarter, compared to a contraction of 0.2% in the previous quarter. Meanwhile, the Bank of Spain forecasted that the Euro-zone’s fourth-largest economy has contracted 0.1% in the second quarter of 2013, indicating latest sign that the nation may be close to emerging from a recession started in late 2011.
On the economic front, the European Commission stated that its preliminary measure of consumer confidence across the Euro-zone rose to -17.4 in July from -18.8 in June, marking the eighth-straight month increase and its highest level since August 2011. Additionally, business confidence index in France improved to 95.0 in July from 93.0 in June.
In the Asian session, at GMT0300, the pair is trading at 1.3209, with the EUR trading 0.10% lower from yesterday’s close.
The pair is expected to find support at 1.3168, and a fall through could take it to the next support level of 1.3127. The pair is expected to find its first resistance at 1.3245, and a rise through could take it to the next resistance level of 1.3281.
Today the European economic calendar is full with manufacturing and services PMI data from France, Germany and the Euro-zone. With disappointing Chinese manufacturing PMI clearing weighing on Euro’s performance in today’s morning session, it would be interesting to see if the common currency reverses its gains amid market expectations for positive data flow from the Europe.
The currency pair is showing convergence with its 20 Hr moving average and is trading above 50 Hr moving average.
