EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose 0.42% against the USD and closed at 1.2962, after Italy saw its borrowing costs fall to their lowest levels since May 2011 at a government auction of five- and ten-year debt. Italy’s Treasury sold €3 billion worth of ten-year debt maturing in November 2022 at an average yield of 4.92%, the lowest since May 2011 and down from 5.24% at a similar auction last month.
In economic news, Euro-zone’s economic confidence index declined to 84.5 in October, from a revised 85.2 in the previous month. Industrial confidence index slipped to -18.0 in October, from a revised -15.9 in September. Similarly, confidence in the service sector declined to -12.1 in October, from a revised -11.9 in September. Also, index of business confidence slipped to -1.62 in October, from -1.34 in the previous month.
Moreover, number of people out of work in Germany rose a seasonally adjusted 20,000 in October to 2.94 million, while the adjusted jobless rate increased to a revised 6.9% in October, from 6.8% in September.
Meanwhile, in Spain, on an annual basis, GDP contracted at a faster rate of 1.6% in the Q3 FY2012, compared to a 1.3% contraction in the Q2 FY2012. Also, harmonized inflation remained at 3.5% in October, against the forecast for a rise to 3.6%.
In the Asian session, at GMT0400, the pair is trading at 1.2960, with the EUR trading marginally lower from yesterday’s close.
The pair is expected to find support at 1.2903, and a fall through could take it to the next support level of 1.2846. The pair is expected to find its first resistance at 1.3000, and a rise through could take it to the next resistance level of 1.3041.
Trading trends in the pair today are expected to be determined by the release of retail sales data in Germany, and the consumer price index and the unemployment data in the Euro-zone.
The currency pair is showing convergence with its 20 Hr moving average and is trading above its 50 Hr moving average.
