EURUSD Movement
For the 24 hours to 23:00 GMT, EUR declined 0.54% against the USD and closed at 1.3043, as risk appetite continued to wane following comments from the Spain’s Deputy Prime Minister, Soraya Sáenz de Santamaria, that the country was still considering the conditions of a possible bailout.
The Euro earlier traded lower after Reuters reported that Spanish Prime Minister, Mariano Rajoy, is in no hurry to decide on asking for help from the European Central Bank and seek aid via Europe’s new bond-purchasing program.
Yesterday, the Bank of Spain reported that value of bad loans climbed to €169.3 billion in July or 9.86% of the total lending, highest level in 50 years.
In a bond auction, the Spanish Treasury raised €3.6 billion of the one-year paper at 2.835% yield, compared to 3.070% yield paid at the previous auction on August 21. The treasury also raised nearly €1 billion by selling 18-month bills at yield 3.072%, down from 3.335% in the previous sale on August 21.
In economic news, in the Euro-zone, the ZEW economic sentiment index improved to -3.8 in September, from -21.2 in the previous month. Additionally, in Germany, the ZEW economic sentiment index rose to -18.2 in September, from -25.5 in the previous month, while the current conditions index declined to 12.6 in September, from 18.2 in August.
Meanwhile, the New York Federal Reserve bank President, William Dudley, stated that the US Federal Reserve would closely monitor all corners of the ailing labor market and is willing to ramp up asset purchases if needed.
In the Asian session, at GMT0300, the pair is trading at 1.3047, with the EUR trading marginally higher from yesterday’s close.
The pair is expected to find support at 1.3013, and a fall through could take it to the next support level of 1.2979. The pair is expected to find its first resistance at 1.3098, and a rise through could take it to the next resistance level of 1.3149.
In the day ahead, investors await Euro-zone construction output data and German bond auction to offer further guidelines to the pair.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
