EURUSD Movement
For the 24 hours to 23:00 GMT on Friday, EUR declined 1.20% against the USD and closed at 1.3116, after the International Swaps and Derivatives Association (ISDA) stated that Greece’s recent debt restructuring with private creditors constituted a “credit event”. Additionally, Fitch Ratings downgraded Greece to ‘Restricted Default’.
On the economic front, German Consumer Price Index rose 2.3% (YoY) in February, in line with the market expectation. Additionally, the trade surplus in Germany increased to €14.2 billion in January, compared to a surplus of €13.9 billion in December. Meanwhile, in France, trade deficit widened to €5.3 billion in January, compared to a deficit of €5.1 billion in February. Moreover, French industrial production rose 0.3% (MoM) in January, compared to a decline of 1.3% in December.
Separately, Euro Group President, Jean-Claude Juncker, stated that Greece has implemented all measures in a satisfactory manner to receive a second bailout package. He also added that ministers approved the disbursement of €35.5 billion towards the private sector involvement operation in the form of EFSF bonds and the accrued interest on the exchanged bonds.
In the Asian session, at GMT0400, the pair is trading at 1.3097, with the EUR trading 0.14% lower from Friday’s close.
The pair is expected to find support at 1.3031, and a fall through could take it to the next support level of 1.2965. The pair is expected to find its first resistance at 1.3218, and a rise through could take it to the next resistance level of 1.3338.
Trading trends in the pair today are expected to be determined by the release of monthly budget statement in the US.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
