EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose 0.24% against the USD and closed at 1.3344, after Euro-zone’s industrial production rose more than expected by 0.4% (MoM) in April.
Separate reports showed that the final reading of consumer price index (CPI) in Germany advanced 1.5% annually in May, in line with the preliminary estimate, whereas Italian annual CPI rose less than preliminary estimate in May. Spanish annual CPI rose in line with the preliminary estimate in May and in France the monthly harmonised CPI rebounded in May.
However, the Euro came under pressure after Italian borrowing costs rose to the highest level since March, after the Treasury auctioned €7 billion of 12-month bills at a yield of 0.96%, up from 0.70% previously.
Separately, the Executive Board member of the European Central Bank (ECB), Benoit Coeure, stated that the ECB’s independence was under strain and that there was no need to change the ECB’s mandate and objectives to cope with the Euro-zone crisis. He also added that inflation expectations for the euro zone are anchored at 2%.
Meanwhile, the German constitutional court hearing on ECB’S OMT program concluded yesterday, with decision not expected until after German elections in September.
In the US, the Mortgage Bankers Association reported that, on a seasonally adjusted basis, mortgage applications volume in the US rose 5.0% in the week ended 7 June 2013.
In the Asian session, at GMT0300, the pair is trading at 1.3355, with the EUR trading marginally higher from yesterday’s close.
The pair is expected to find support at 1.3291, and a fall through could take it to the next support level of 1.3228. The pair is expected to find its first resistance at 1.3393, and a rise through could take it to the next resistance level of 1.3432.
Trading trends in the pair today are expected to be determined by the retail sales data due for release in the US.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
