EURUSD Movement
For the 24 hours to 23:00 GMT, EUR declined 0.98% against the USD and closed at1.3032, after the European Central Bank (ECB), in its monthly report cut its GDP forecasts for the Euro-zone to -0.4% in 2013, from 0% estimated earlier. It also cut its inflation estimate to 1.7% in 2013, from 1.8% forecasted earlier and stated that, the risks to the Euro-zone economy remains downside and that “the monetary policy stance will remain accommodative for as long as needed”.
In economic news, Spanish adjusted industrial output dropped 0.6% (YoY) in March, following a revised 6.9% decline recorded in the previous month. Unemployment in Greece increased to 27.0% (MoM) in February, from a revised 26.7% recorded in January.
In the US, initial jobless claims dropped unexpectedly to a five-year low to 323K during the week ending May 3, from a revised 327K claims recorded in the previous week.
In the Asian session, at GMT0300, the pair is trading at 1.3043, with the EUR trading maginally higher from yesterday’s close.
The pair is expected to find support at 1.2976, and a fall through could take it to the next support level of 1.2909. The pair is expected to find its first resistance at 1.3144, and a rise through could take it to the next resistance level of 1.3245.
Trading trends in the pair today are expected to be determined by trade balance data from Germany and industrial product data from Italy. The US monthly budget also scheduled for today is expected to generate market interest.
The currency pair is trading below its 20 Hr and 50 Hr moving average.
