EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose 0.23% against the USD and closed at 1.3604, as risk-appetite among investors increased after the European Commission reported that consumer confidence in the Euro-zone unexpectedly surged to a reading of 15.4 in November, defying analysts’ expectation for a drop to a reading of -15.4, compared previous month’s reading of -14.5. Similarly, Euro-zone’s economic sentiment indicator edged up to a reading of 98.5 in November, more than market expectations for a rise to 98.0 and compared to a level of 97.7 recorded in the previous month.
Positive sentiment was also fuelled after an official report from Germany revealed that the nation’s consumer price index rose more-than-expected 1.3% (YoY) in November, compared to a 1.2% increase witnessed in the October. Meanwhile, on a seasonally adjusted basis, the unemployment rate in Germany for November remained unchanged at previous month’s level of 6.9%, in-line with market estimates.
The Euro-zone single currency drew further support from a report that showed gross domestic product (GDP) of Spain, Euro-zone’s fourth largest economy, rose 0.1% (QoQ) in the third quarter, first time in two years.
However, the woes for the periphery nations of the Euro-zone seemed to be far from over, after the Bank of Cyprus revealed that its deposits plunged 40% in the first half of the year, their lowest level in 10 months. Furthermore, the Organisation for Economic Co-operation and Development (OECD) projected that the Greece economy would contract 0.4% for the seventh year in 2014, down from 3.5% expected for this year, cautioning that the country would probably still need financial help.
In the Asian session, at GMT0400, the pair is trading at 1.3613, with the EUR trading 0.07% higher from yesterday’s close.
The pair is expected to find support at 1.3580, and a fall through could take it to the next support level of 1.3547. The pair is expected to find its first resistance at 1.3634, and a rise through could take it to the next resistance level of 1.3655.
Later today, the Eurostat is scheduled to release a report on Euro-zone’s consumer price index, which is widely expected to rise 0.8% (YoY) in November, following a 0.7% (YoY) rise witnessed in the previous month.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
