EURUSD Movement
For the 24 hours to 23:00 GMT, EUR declined 0.19% against the USD and closed at 1.2559, as investors remained cautious ahead of European Central Bank (ECB) meeting on Thursday to decide whether or not to buy sovereign bonds issued by Spain and Italy.
Yesterday, the Italian Prime Minister, Mario Monti, and French Presiden Francois, Hollande stated that Europe must urgently restore economic growth and create jobs as part of a wider plan to safeguard the European Union.
Meanwhile, the Netherlands Prime Minister, Mark Rutte, stated that the nation would not contribute any further aid to Greece, but added that Athens could be given more time.
Moreover, the German, Finance Minister Wolfgang Schaeuble, stated that Greece must fully implement agreed measures in order to receive further aid.
In economic news, the Euro-zone producer price index on a seasonally adjusted basis rose 0.4% (MoM) in July, against the expectations for a 0.2% rise. In Spain, number of unemployed person climbed by 38,179 to 4.63 million people in August, compared to a decline by 27,814 people in July.
In the Asian session, at GMT0300, the pair is trading at 1.2538, with the EUR trading 0.17% lower from yesterday’s close.
The pair is expected to find support at 1.2498, and a fall through could take it to the next support level of 1.2458. The pair is expected to find its first resistance at 1.2603, and a rise through could take it to the next resistance level of 1.2668.
Trading trends in the pair today are expected to be determined by Euro-zone retail sales and services purchasing managers index data.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
