EURUSD Movement
For the 24 hours to 23:00 GMT, EUR declined 1.38% against the USD and closed at 1.2473, as lack of details about Spain’s weekend bank bailout and uncertainty surrounding elections in Greece compounded worries that the financial crisis in Europe would deepen.
Adding to the gloom, Spanish bond yields rose as investors equated that the weekend bailout deal for Spanish bank as a temporary solution for the nation and that it would not address the question of how to kick-start growth in Spain.
On the economic front, French industrial production rose unexpectedly by 1.5% (MoM) in April from a month ago, however manufacturing production eased 0.7% (MoM) in April. Separately, in Italy, gross domestic product contracted 0.8% (QoQ) in the first quarter of 2012.
Meanwhile, in a bond auction, Germany raised €3.53 billion from the sale of its Treasury discount paper due on December 5, with yield on the 6-month debt falling to 0.0070% from 0.0371% in the previous sale on May 14.
In the Asian session, at GMT0300, the pair is trading at 1.2484, with the EUR trading 0.09% higher from yesterday’s close.
The pair is expected to find support at 1.2407, and a fall through could take it to the next support level of 1.2331. The pair is expected to find its first resistance at 1.2604, and a rise through could take it to the next resistance level of 1.2724.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
