EURUSD Movement
For the 24 hours to 23:00 GMT, EUR declined 0.20% against the USD and closed at 1.2939. Earlier, the greenback had come under pressure, following rumours that the Fitch Ratings agency was set to downgrade the US. However, Fitch Ratings later stated that its negative outlook on the US’s AAA credit ranking is unlikely to change before late 2013 as it waits to assess any deficit- reduction plans following this year’s elections.
Meanwhile, in Europe, Greece has made no progress in its talks between the coalition leaders and the country’s international lenders.
Euro-zone’s annual growth rate of the money supply, M3, decreased to 2.7% in September, from a revised 2.8% in August. Additionally, Italian retail sales, on a seasonally adjusted monthly basis, remained unchanged in August, compared to a 0.2% drop in the previous month.
In the Asian session, at GMT0300, the pair is trading at 1.2938, with the EUR trading marginally lower from yesterday’s close.
The pair is expected to find support at 1.2903, and a fall through could take it to the next support level of 1.2867. The pair is expected to find its first resistance at 1.2999, and a rise through could take it to the next resistance level of 1.3059.
Trading trends in the pair today are expected to be determined by the release of Germany’s Gfk consumer confidence survey and the import price index and the French consumer confidence data.
The currency pair is trading just below its 20 Hr and 50 Hr moving averages.
