EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose 0.13% against the USD and closed at 1.3546, in a thin-holiday trade. The Euro also found some support from comments of Ewald Nowotny, Governor of Austria’s Central Bank and a Board Member of the European Central Bank (ECB). He indicated that the growth in the Euro-zone is expected to jump to around 1% or more in 2014 following a 0.4% drop in 2013.
In economic news, an official report showed that producer price index (PPI) in Germany rose 0.1% (MoM) in December, against the market expectations of a flat change and compared to a 0.1% decline recorded in the preceding month. Separately, another report from Italy revealed that, on a non-seasonally adjusted basis, industrial orders in the nation rose 3.0% (YoY) in November, following a 1.2% rise in the previous month. Meanwhile, on a non-seasonally adjusted basis, Italy’s industrial sales advanced 0.4% (YoY) in November, compared to a 1.3% drop registered in the preceding month.
In the Asian session, at GMT0400, the pair is trading at 1.3544, with the EUR trading tad lower from yesterday’s close.
The pair is expected to find support at 1.3523, and a fall through could take it to the next support level of 1.3502. 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 1.3590.
Market participants would be cautious about the potential announcement by the German Federal Constitutional Court regarding the constitutionality of the ECB’s Outright Monetary Transactions (OMT) policy, due later today. Also later today, the ZEW is expected to release a report on the economic sentiment of Germany and the Euro-zone.
The currency pair is trading just below its 20 Hr and 50 Hr moving averages.
