EURUSD movement
For the 24 hours to 23:00 GMT, EUR declined marginally against the USD and closed at 1.3152, after the European Central Bank (ECB) President, Mario Draghi refrained from pledging more liquidity measures to boost European economy. He further stated that policymakers did not discuss an interest-rate cut at their monthly meeting earlier.
He further indicated that the economic outlook in the Euro-zone was subject to downside risks but inflation pressures should remain limited.
The Euro also came under pressure, after reports showed that Spanish five-year bond yields rose to 4.96% from 3.69%, while the yields on three-year bonds climbed to 4.03% from 2.61%.
On economic front, producer price index (PPI) in the Euro-zone rose 0.5% (MoM) in March, compared to 0.6% rise in previous month. Market had expected 0.6% rise in March.
In the Asian session, at GMT0300, the pair is trading at 1.3159, with the EUR trading 0.05% higher from yesterday’s close.
The pair is expected to find support at 1.3109, and a fall through could take it to the next support level of 1.3060. The pair is expected to find its first resistance at 1.3194, and a rise through could take it to the next resistance level of 1.3230.
Trading trends in the pair today are expected to be determined by services purchasing manager index and retail sales data in Euro-zone.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
