EURUSD Movement
For the 24 hours to 23:00 GMT, EUR strengthened 0.30% against the USD and closed at 1.3379, as German trade and current account widened in June, added to signs that the Europe’s largest economy is picking up.
The seasonally adjusted trade surplus in Germany widened to €15.7 billion in June, from a revised surplus of €14.6 billion in May. Additionally, on non-seasonally adjusted basis, the German current account surplus widened to €17.3 billion in June, from €11.2 billion in May.
Separately, the European Central Bank trimmed its growth forecast for the Euro region yesterday as the bloc struggles to escape a recession. The central bank also reiterated its intention to maintain interest rates at 0.5% for extended period of time.
Economic reports out from the US showed that the number of Americans filing new claims for jobless benefits rose slightly for week ended August 3, by 5000 to 333K, compared to an expectation for an increase to 336K.
In the Asian session, at GMT0300, the pair is trading at 1.3381, with the EUR trading tad higher from yesterday’s close.
The pair is expected to find support at 1.3338, and a fall through could take it to the next support level of 1.3294. The pair is expected to find its first resistance at 1.3413, and a rise through could take it to the next resistance level of 1.3444.
Investors are awaiting trade balance and consumer prices data from Italy and industrial output from France to be released later today.
The currency pair is showing convergence with its 20 Hr moving average and is trading above 50 Hr moving average.
