EURUSD Movement
For the 24 hours to 23:00 GMT, EUR declined 0.24% against the USD and closed at 1.3324, after Bank of Spain stated that nation’s economy has skidded back into recession and amid disappointing consumer confidence data in Germany.
The Gfk consumer confidence survey in Germany declined to 5.9 points in April compared to 6.0 points recorded in March. Market expected the indicator to rise to 6.1 points. Additionally, import prices in Germany rose 1.0% (MoM) in February. Moreover, consumer confidence index in France rose to 87.0 in March, from 82.0 in February.
Meanwhile, Moody’s Investors Service has affirmed the ‘AAA’ rating on German government bonds and stated that rating outlook remained ‘Stable’ due to ‘very low event risk’ despite the prolonged debt crisis.
Meanwhile, in the bond auction, the Italian Treasury sold €2.8 billion of January 2014-dated zero-coupon notes, with yields falling to their lowest since November 2010. Additionally, the Spanish Treasury sold €2.579 billion of three- and six-month Treasury bills, with average yield falling to 0.381% on the three-month T-bills, from 0.396% at the previous auction February 21, and on the six-month T-bills, average yield rose to 0.836%, from 0.764% in February.
Separately, the Organization for Economic Cooperation and Development Secretary General, Angel Gurria, stated that Euro-zone finance ministers meeting at the end of this week needs to boost the firepower of the region’s rescue funds to at least €1 trillion ($1.34 trillion) in order to restore market confidence.
In the Asian session, at GMT0300, the pair is trading at 1.3330, with the EUR trading 0.04% higher from yesterday’s close.
The pair is expected to find support at 1.3300, and a fall through could take it to the next support level of 1.3270. The pair is expected to find its first resistance at 1.3373, and a rise through could take it to the next resistance level of 1.3416.
Trading trends in the pair today are expected to be determined by the release of German Consumer Price Index and French Gross Domestic Product.
The currency pair is trading between its 20 Hr and 50 Hr moving averages.
