EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose 0.25% against the USD and closed at 1.3567. The US Dollar gave up ground against the Euro, after an official report revealed that consumer confidence index in the US declined to a reading 70.4 in November, defying market expectations for a rise to 72.9, from previous month’s level of 72.4.
Earlier, the Euro gained traction, after the Governor of the People’s Bank of China (PBoC), Zhou Xiaochuan stated that the Euro-zone’s single currency, the Euro, was important to his nation’s reserve management. Adding to the positive sentiment were comments from the European Central Bank (ECB) Executive Board Members, Yves Mersch, who warned that the central bank’s excess liquidity policy should not become a “permanent feature” and Joerg Asmussen, who opined that Euro-zone’s economic recovery was “going in the right direction” even though at present it seemed “weak, fragile and uneven.”
Separately, another senior European Central Bank (ECB) official, Benoit Coeure, in his interview with CNBC, projected that Euro-Zone’s “inflation will pick up gradually and will come back to the 2% target of the ECB”, adding that the central bank “does not see it as a very likely prospect that disinflation would worsen in the Euro-zone as growth recovers.”
On the economic front, a report showed that consumer confidence in Italy rose to a reading of 98.3 in November, surpassing analysts’ expectations for the consumer confidence to remain unchanged at previous month’s level of 97.3.
In the Asian session, at GMT0400, the pair is trading at 1.3591, with the EUR trading 0.18% higher from yesterday’s close.
The pair is expected to find support at 1.3541, and a fall through could take it to the next support level of 1.3490. The pair is expected to find its first resistance at 1.3621, and a rise through could take it to the next resistance level of 1.3650.
Traders keenly await the outcome of a momentous vote in Italy, due later today, to determine whether Silvio Berlusconi should be expelled from the parliament.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
