EURUSD Movement
For the 24 hours to 23:00 GMT, EUR declined 0.47% against the USD and closed at 1.2993, as Greece’s politicians struggle to form a new government, raising concern that the nation might leave the Euro bloc.
On the economic front, industrial production in Germany rose more-than-expected by 2.8% in March, beating consensus forecast of a 0.8% rise.
Meanwhile, the European Central Bank (ECB) Executive Board member, Joerg Asmussen, stated that the central bank would not renegotiate Greece’s bailout package and that the nation must adhere to its fiscal commitments if it wants to remain in the Euro-zone.
Separately, the ECB President, Mario Draghi stated that the much-delayed TARGET2-Securities (T2S) platform, which the ECB hopes would go live in 2015, will make a “major contribution to the strengthening of the single market” and help make financial markets safer and more efficient.
Meanwhile in bond auction, Greece debt agency, PDMA, sold €1.3 billion of six month T-bills at an auction yesterday, with yield rising to 4.69%, from 4.55% at the previous auction on April 10.
In the Asian session, at GMT0300, the pair is trading at 1.2971, with the EUR trading 0.17% lower from yesterday’s close.
The pair is expected to find support at 1.2944, and a fall through could take it to the next support level of 1.2916. The pair is expected to find its first resistance at 1.3021, and a rise through could take it to the next resistance level of 1.3070.
Trading trends in the pair today are expected to be determined by the release of wholesale price index, trade balance and current account data in Germany.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
