EURUSD Movement
For the 24 hours to 23:00 GMT, EUR declined 0.49% against the USD and closed at 1.3600. The US Dollar gained ground against the Euro after the Fed, in its Beige Book, expressed positive outlook for economic growth of the nation, by stating that the moderate pace of growth in the US economy is most likely to improve in the coming months. The report also highlighted an increase in the pace of hiring in the two-thirds of the 12 districts of the US. Adding to the positive sentiment were comments from Chicago Fed President, Charles Evans, who stated that the Fed’s decision to taper its stimulus measure by $10 billion in December was “quite reasonable.” He also highlighted his expectations for the US economy to register a growth of 2.75% in 2014 and the unemployment rate to fall to 6% or even a bit lower by the end of 2015, but at the same time also warned that the inflation rate might remain persistently low, despite the central bank’s accommodative monetary policy.
Meanwhile, in the Euro-zone, a report showed that, on a non-seasonally adjusted basis, trade surplus in the region expanded to €17.1 billion in November, more than market expectations for the surplus to rise to €17.0 billion, from the previous month’s level of €16.8 billion. Another report revealed that, on a non-seasonally adjusted annual basis, Germany’s real Gross Domestic Product (GDP) rose 0.4% in 2013, lower than analysts’ expectations for a growth of 0.5% and following a 0.7% growth recorded in the preceding year.
In the Asian session, at GMT0400, the pair is trading at 1.3620, with the EUR trading 0.15% higher from yesterday’s close.
The pair is expected to find support at 1.3585, and a fall through could take it to the next support level of 1.3549. The pair is expected to find its first resistance at 1.3651, and a rise through could take it to the next resistance level of 1.3681.
Traders are keenly awaiting consumer inflation data from Euro-zone and Germany, slated for release later today. Additionally, European Central Bank (ECB)’s monthly report on the economic situation in the region and German Deutsche Bundesbank President, Dr Jens Weidmann’s speech, ahead in the day, is likely to grab market attention.
The currency pair is trading between its 20 Hr and 50 Hr moving averages.
