EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose 0.15% against the USD and closed at 1.3786, after the European Central Bank (ECB) Vice-President, Vitor Constancio stated that the Euro-zone banks have plenty of collateral, thereby indicating that the banks could easily increase their use of its funding if they so wished.
On the economic front, the consumer price index in Germany failed to offer any surprises, and rose by 1.3% on an annual basis, in line with analyst expectations and flash estimates. Separately, the French final non-farm payrolls declined by 0.1% or 15,600 jobs on a quarterly basis in the third quarter, in line with expectations. Additionally, French current account showed a €2.1 billion deficit in October, as compared to a revised deficit of €3.6 billion in the prior month. Meanwhile, the unemployment rate in Greece increased to a record-high 27.4% in September from 27.3% in August.
Losses in the US Dollar were capped after investors welcomed the two-year budget deal agreed upon by the Senate Budget Committee Chairman, Patty Murray and the House Budget Committee Chairman, Paul Ryan, subject to approval by the House and the Senate, which would prevent the US government from shutting down in the coming months. In a separate report released by the Mortgage Bankers Association, applications for mortgages climbed 1.0% after plunging -12.8% in the previous week. Moreover, the monthly budget statement indicated that the budget deficit narrowed to $135.2 billion in November, compared with $172.1 billion in November 2012, suggesting a further improvement in the financial health of the nation.
In the Asian session, at GMT0400, the pair is trading at 1.3795, with the EUR trading 0.07% higher from yesterday’s close.
The pair is expected to find support at 1.3753, and a fall through could take it to the next support level of 1.3710. The pair is expected to find its first resistance at 1.3825, and a rise through could take it to the next resistance level of 1.3854.
Trading trends in the pair today are expected to be determined by the ECB monthly report and the Euro- zone industrial production numbers.
The currency pair is trading just above its 20 Hr and 50 Hr moving averages.
