EURUSD Movement
For the 24 hours to 23:00 GMT, EUR declined 0.93% against the USD, on Friday, and closed at 1.4110, on concern that European finance ministers may fail to resolve Greece’s debt restructuring.
Additionally, the news of arrest of IMF chief, Dominique Strauss-Kahn has unnerved Greece, with officials stating that it added more uncertainty to decision-making at a critical time, as Strauss-Kahn had been due to attend a crucial meeting of Euro zone finance ministers in Brussels today, where Greece’s debt is expected to be the focus of discussions.
In the Euro zone, the Gross Domestic Product rose by 0.8% (Q-o-Q) in the first quarter of 2011 from 0.3% growth in the last quarter in 2010. Additionally, in Germany, the Gross Domestic Product rose by 1.5% in the first quarter of 2011 (1Q FY2011), compared to a growth rate of 0.4% recorded in 4Q FY2010.
In the Asian session, at 3:00GMT, the EURUSD is trading at 1.4092, 0.13% lower from the levels yesterday at 23:00GMT.
The pair has its first short term resistance at 1.4273, followed by the next resistance at 1.4455. The first support is at 1.3977, with the subsequent support at 1.3863.
Trading trends in the pair today are expected to be determined by data release on trade balance and consumer price index in the Euro zone.
The currency pair is trading just below its 20 Hr and 50 Hr moving averages.
