EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose marginally against the USD and closed at 1.2806.
Yesterday, the Spanish Prime Minister, Mariano Rajoy ruled out seeking a bailout in 2012 but vowed to do so if faced by persistent high borrowing costs.
On the economic front, Euro-zone’s services purchasing managers’ index (PMI) retreated to a seasonally adjusted reading of 46.0 in October, lower than the preliminary reading of 46.2, while the producer price index climbed 2.7% in September. Meanwhile, in Germany, services PMI fell to a reading of 48.4 in October, while factory orders fell 3.3% (MoM) in September. In France, the final services PMI fell to 44.6 in October. In Italy, on a seasonally adjusted basis, services PMI rose to a reading of 46.0 in October. In Spain, on a seasonally adjusted basis, services PMI rose to a reading of 41.2 in October.
In the Asian session, at GMT0400, the pair is trading at 1.2858, with the EUR trading 0.41% higher from yesterday’s close.
Today morning, in the Asian hours, news poured in that Democrat candidate, Barack Obama has been re-elected as President of the United States of America, narrowly edging Republican challenger, Mitt Romney in a hard-fought battle for the White House.
The pair is expected to find support at 1.2790, and a fall through could take it to the next support level of 1.2721. The pair is expected to find its first resistance at 1.2901, and a rise through could take it to the next resistance level of 1.2944.
Trading trends in the pair today are expected to be determined by the release of retail sales in the Euro-zone and industrial production in Germany. Investors also eye the Greek austerity vote schedule later today.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
