EURUSD Movement
For the 24 hours to 23:00 GMT, EUR declined 0.28% against the USD and closed at 1.3446, after the European Central Bank (ECB), in its monthly report, highlighted its willingness to continue with the current accommodative monetary policy stance for as long as necessary, in order to support the gradual recovery in the Euro-zone economy. Furthermore, the central bank hinted that the region might experience a prolonged period of low inflation.
On the economic front, on a seasonally adjusted basis, Euro-zone’s Gross Domestic Product (GDP) declined 0.4% (YoY) in the third quarter, worse than analysts’ expectations for a 0.3% (YoY) fall and compared to a 0.5% (YoY) drop witnessed in the preceding quarter.
Meanwhile, in the US, the Fed Vice Chairman, Janet Yellen, during her testimony to the Senate Banking Committee, expressed her commitment to promote a strong economic recovery in the nation and ensure that the central bank’s monetary stimulus measure are removed too soon. Separately, a report showed that initial jobless claims in the US declined lesser-than-expected to 339,000 during the week ended November 08, from a reading of 341,000 registered in the earlier week.
In the Asian session, at GMT0400, the pair is trading at 1.3454, with the EUR trading 0.06% higher from yesterday’s close.
The pair is expected to find support at 1.3418, and a fall through could take it to the next support level of 1.3381. The pair is expected to find its first resistance at 1.3490, and a rise through could take it to the next resistance level of 1.3525.
Investors keenly await Euro-zone’s consumer inflation rate data, to be released later today, for further guidance in the pair.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
