EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose 0.21% against the USD and closed at 1.3524. The US Dollar gave up ground against the Euro, amid concerns over the US Senate budget talks. However, lingering political turmoil in Italy capped the gains of the Euro-zone’s common currency.
In the Euro-zone, an official report confirmed that the region’s consumer price index came in at 1.1% (YoY) in September, less than market expectation of 1.2% and compared to a 1.3% rise registered in the previous month. Another report revealed that retail sales in Germany rose 0.5% (MoM) during August, less than analysts’ call for a rise to 0.8% and following a 0.2% drop registered in the preceding month. Separately, Fitch Ratings issued a warning that Italy’s credit rating could be at risk if Italian Prime Minster, Silvio Berlusconi’s decision to withdraw his party’s support from the coalition government derailed the country’s fiscal targets.
Elsewhere in the US President, Barack Obama, urged Republicans to back away from their plan of rejecting the latest US House proposal to delay Obama care law, asking them to meet with him at another time to negotiate budget differences.
In the Asian session, at GMT0300, the pair is trading at 1.3532, with the EUR trading 0.06% higher from yesterday’s close.
The pair is expected to find support at 1.3487, and a fall through could take it to the next support level of 1.3442. The pair is expected to find its first resistance at 1.3567, and a rise through could take it to the next resistance level of 1.3602.
Investors await Euro-zone’s manufacturing and employment data, schedule to release later today, for further direction in the Euro.
The currency pair is trading just above its 20 Hr and 50 Hr moving averages.
