EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR declined 0.32% against the USD and closed at 1.3547, as few of the top ECB policymakers signalled that the central bank had still more firepower to support the Euro-zone economy. An ECB Governing Council member, Erkki Liikanen highlighted the central bank’s readiness to act in order to support price stability and the economic recovery in the region while another policymaker, Jozef Makuch indicated that the ECB stood prepared to slash its interest rates further if its last week’s policy measures proved insufficient. Separately, German Finance Minister, Wolfgang Schaeuble, citing the stubbornly low inflation in the Euro-zone’s economy, applauded the ECB’s last week policy action but at the very same time cautioned that the central bank should not leave its interest rates at a record low level for a longer time than necessary. Meanwhile, during a panel discussion at a conference in Frankfurt, an ECB Executive Board member, Benoit Coeure, hinted that the central bank was propounding measures to revive the region’s ABS market while suggesting that Euro-zone economy was not in crisis mode anymore.
In other economic news, French industrial production rebounded 0.3% in April but business sentiment in the nation declined in May. Separately, data showed that the Italian economy shrank 0.1% in the first quarter while industrial output in the nation rose at the fastest annual pace since August 2011 in April.
In a noteworthy event, the IMF warned against the fatigue in Greece coalition government and opined that the nation would only achieve its fiscal targets if efficiency in its public sector improves dramatically.
Meanwhile, in the US, the NFIB small-business optimism index rose more-than-expected last month to reach its highest reading since September 2007.
In the Asian session, at GMT0300, the pair is trading at 1.3525, with the EUR trading 0.16% lower from yesterday’s close.
The pair is expected to find support at 1.3496, and a fall through could take it to the next support level of 1.3468. The pair is expected to find its first resistance at 1.3578, and a rise through could take it to the next resistance level of 1.3632.
Amid lack of major economic releases in the Euro-zone, traders would eye global, economic news for further cues in the currency pair.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
