EURUSD Movement
For the 24 hours to 23:00 GMT on Friday, EUR rose 0.68% against the USD and closed at 1.2782, after an opinion poll in Greece on Friday, indicated that pro-bailout party, New Democracy was leading the polls ahead of fresh elections, due to be held on June 17.
In economic news, the output price inflation, in Germany, eased to 2.4% (YoY) in April, from 3.3% in March and against the market expectation of 2.5%.
Separately, the Bank of Spain reported that Spanish banks’ bad loans climbed to 8.37% of their outstanding credit portfolios in March, the highest level since August 1994.
On the other hand, the German Finance Minister, Wolfgang Schaeuble stated that he expects markets to calm in the next 12 to 24 months, as the Euro-zone continues to face a crisis of confidence amid Greek uncertainty.
Meanwhile, over the weekend, Group of Eight industrial nations (G-8) leaders backed keeping Greece in the Euro-zone and vowed to take all steps necessary to combat financial turmoil while revitalising a global economy increasingly threatened by the Euro-zone debt crisis.
Additionally, yesterday, leader of largest anti-baiout party,Syriza, Alexis Tsipras stated that he would seek talks with European leaders on new terms to keep Greece in the Euro-zone, if he was elected.
In the Asian session, at GMT0300, the pair is trading at 1.2795, with the EUR trading 0.1% higher from Friday’s close, amid signs that Greece would remain in Euro-zone following G-8 meeting.
The pair is expected to find support at 1.2687, and a fall through could take it to the next support level of 1.2579. The pair is expected to find its first resistance at 1.2858, and a rise through could take it to the next resistance level of 1.2921.
Trading trends in the pair today are expected to be determined by the release construction output in Euro-Zone.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
