EURUSD Movement
For the 24 hours to 23:00 GMT, EUR declined 0.37% against the USD and closed at 1.2261, after data showed that Spanish economy continued its contraction and following weak economic data from the Euro-zone.
Meanwhile, the US Treasury Secretary, Timothy Geithner, and Germany’s Finance Minister,Wolfgang Schaeuble, in a joint statement stressed the need for coordinated action in the face of the Euro-zone debt crisis and faltering global growth.
In Greece, Conservative Prime Minister, Antonis Samaras, started talks with junior coalition partners who have so far declined Cabinet-level proposals for the new €11.5 billion ($14.1 billion) package for 2013-14.
In a bond auction, Italy sold €5.47 billion of 3-, 5- and 10- year bonds at a lower borrowing cost.
On the economic front, in Spain, the gross domestic product (GDP) contracted 0.4% (QoQ) in the Q2 FY2012, following a 0.3% contraction in Q4 FY2011.
In the Euro-zone, the economic sentiment index declined to 87.9 in July, compared to 89.9 in June, while business confidence index declined to reading of -1.27 in July. Separately, consumer confidence index fell to -21.5 in July, from a reading of -19.8 in June, while services confidence edged down to -8.5 in July, from -7.4 in June. Also, the industrial confidence index fell to -15.0 in July, following a reading of -12.8 in June.
Yesterday, the Moody’s Investors Service stated that the European Central Bank (ECB) can buy time for Euro-zone policy makers, but it cannot resolve the region’s debt crisis.
In the Asian session, at GMT0300, the pair is trading at 1.2284, with the EUR trading 0.19% higher from yesterday’s close.
The pair is expected to find support at 1.2240, and a fall through could take it to the next support level of 1.2196. The pair is expected to find its first resistance at 1.2313, and a rise through could take it to the next resistance level of 1.2342.
Trading trends in the pair today are expected to be determined by the release of unemployment rate and consumer price index in the Euro-zone and German retail sales data.
The currency pair is trading between its 20 Hr and 50 Hr moving averages.
