EURUSD Movement
On Friday, EUR declined 0.29% against the USD and closed at 1.3340, as weak French industrial output data disappointed investors. Industrial production in France declined 1.4% (MoM) in June, against the expected 0.1% rise, while manufacturing production fell 0.4% (MoM) in June. However, budget deficit in France narrowed to €59.3 billion in June, from a deficit of €72.6 billion recorded in May.
Separately, global trade surplus in Italy narrowed to €3.6 billion in June. Moreover, the consumer price index (CPI) in Italy advanced 1.2% annually in July, more than the preliminary estimate of a rise of 1.1%.
In the US, total inventories of merchant wholesalers fell 0.2% (MoM) in June, from a downwardly revised 0.6% fall recorded in previous month.
In the Asian session, at GMT0300, the pair is trading at 1.3323, with the EUR trading 0.13% lower from Friday’s close.
The German news weekly, Der Spiegel on Sunday, citing a document from the Bundesbank, reported that the country’s central bank expects Greece to need additional rescue loans from its European partners by the start of 2014. The central bank also expressed the risks of the current rescue program for Greece as “unusually high” and the performance of the Greek government as “hardly satisfying”.
The pair is expected to find support at 1.3296, and a fall through could take it to the next support level of 1.3270. The pair is expected to find its first resistance at 1.3370, and a rise through could take it to the next resistance level of 1.3418.
Trading trend in the pair today is expected to be determined by the release of the French current account data and the US monthly budget statement.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
