EURUSD Movement
For the 24 hours to 23:00 GMT, EUR declined 0.13% against the USD and closed at 1.3533, after the European Central Bank (ECB) Governing Council Member, Christian Noyer, highlighted the risks of a prolonged low inflation to the economy and projected the interest rates to remain low for an ‘extended period’ of time to tackle price instability. He further hinted the possibility for the central bank to slash its benchmark interest rate further in order to ensure that the Euro-zone economy does not fall into deflation.
On the economic front, INSEE reported that its index on the business climate of France remained unchanged at previous month’s level of 98.0 in November, defying market expectation for the index to fall to a reading of 97.0. Separately, the National Institute of Statistics revealed that Italy’s (non-EU) trade surplus expanded to a reading of €2.899 billion in October, following previous month’s surplus of €0.322 billion.
In the Asian session, at GMT0400, the pair is trading at 1.3532, with the EUR trading tad lower from yesterday’s close.
The pair is expected to find support at 1.3498, and a fall through could take it to the next support level of 1.3463. The pair is expected to find its first resistance at 1.3558, and a rise through could take it to the next resistance level of 1.3583.
Amid lack of major economic releases from the Euro-zone ahead in the day, market participants are expected to closely observe global economic news for further guidance in the pair.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
