EURUSD Movement
For the 24 hours to 23:00 GMT, EUR declined 0.44% against the USD and closed at 1.3523, as investors fretted that European Central Bank (ECB) President, Mario Draghi, could express concerns over the impact of the Euro’s recent gains on the region’s economic recovery at the bank’s post-policy meeting press conference later today.
However, losses in the Euro were pared as the German government spokesman, Steffen Seibert, indicated that the Euro is not currently overvalued and exchange rates should not be used to try and boost competitiveness.
On the economic front, seasonally adjusted monthly factory orders in Germany rose 0.8% in December, compared to a 1.8% decline recorded in the previous month. Also, Markit Economics reported that, on a seasonally adjusted basis, construction Purchasing Managers’ Index (PMI) in Germany improved to a reading of 47.7 in January, from a reading of 43.3 in December.
In the US, mortgage application volume for the week ended 1 February 2013 rose 3.4% from one week earlier.
In the Asian session, at GMT0400, the pair is trading at 1.3511, with the EUR trading marginally lower from yesterday’s close.
The pair is expected to find support at 1.3474, and a fall through could take it to the next support level of 1.3437. The pair is expected to find its first resistance at 1.3566, and a rise through could take it to the next resistance level of 1.3621.
Euro-zone’s interest rate decision and monetary policy statement are eagerly awaited by investors, while Germany’s industrial production data is likely to receive increased market attention.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
