EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose 0.26% against the USD and closed at 1.3607, after the European Central Bank (ECB) left its benchmark interest rate unchanged at 0.25% and after a report showed that the economic sentiment indicator in the Euro-zone advanced more-than-expected to a reading of 100.0 in December, the best level since July 2011, following previous month’s reading of 98.4. However, the gains in the Euro-zone’s single currency were capped after the ECB President, Mario Draghi, reiterated the central bank’s forward guidance for the key interest rates “to remain at present or lower levels for an extended period of time.” He additionally stated that the ECB policy-makers would maintain an accommodative stance of monetary policy for as long as necessary.
Meanwhile, the US Dollar came under pressure after the Kansas City Fed President, Esther George, expressed concerns on the impact of low interest rates on the economy and hinted the possibility for the central bank to keep its main interest rate “too low” for an extended period of time.
In the Asian session, at GMT0400, the pair is trading at 1.3610, with the EUR trading tad higher from yesterday’s close.
The pair is expected to find support at 1.3561, and a fall through could take it to the next support level of 1.3511. The pair is expected to find its first resistance at 1.3647, and a rise through could take it to the next resistance level of 1.3683.
Traders keenly await the Euro-zone’s Gross Domestic Product (GDP) data, scheduled for release later today, which is widely expected to register a 0.1% (QoQ) growth in the third quarter, following a 0.3% (QoQ) growth in the preceding quarter.
The currency pair is trading just above its 20 Hr and 50 Hr moving averages.
