EURUSD Movement
For the 24 hours to 23:00 GMT, EUR declined 0.14% against the USD and closed at 1.2503, after reports showed that the German business confidence in July deteriorated to the lowest level since June 2010.
The European Central Bank (ECB) Executive Board member, Joerg Asmussen stated that the ECB would stay within its mandate and intervene on the secondary debt markets only in conjunction with European Union rescue funds.
Meanwhile on the data front, the business confidence index in Germany declined to a reading of 102.3 in August, compared to a reading of 103.3 in July. The current assessment index in Germany dropped to a reading of 111.2 in August, while the business expectations index fell to 94.2 in August. Additionally, the import price index in Germany rose 0.7% (MoM) in July, compared to a 1.5% drop in the previous month.
In the Asian session, at GMT0300, the pair is trading at 1.2480, with the EUR trading 0.18% lower from yesterday’s close.
The pair is expected to find support at 1.2452, and a fall through could take it to the next support level of 1.2424. The pair is expected to find its first resistance at 1.2522, and a rise through could take it to the next resistance level of 1.2564.
Trading trends in the pair today are expected to be determined by the release of GfK consumer confidence survey in Germany and M3 money supply in the Euro-zone. Additionally, bond auction in Italy and Spain are also likely to generate some market interest.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
