EURUSD Movement
For the 24 hours to 23:00 GMT, EUR declined marginally against the USD and closed at 1.3108.
Yesterday, the French Finance Minister, Pierre Moscovici, stated that the Spain must decide for itself whether to seek an international bailout, citing this is a matter of sovereignty and we do not decide for the Spanish government.
Meanwhile, the German Chancellor, Angela Merkel, yesterday balked on plans to have the new supervisor that would oversee every bank in the Euro-zone and insisted that the banks supervision must not be rushed and that she sees no need for joint European deposit insurance.
In the Euro-zone, on a seasonally adjusted basis, trade surplus narrowed to €7.90 billion in July, following a €10.50 billion surplus in June. Additionally, on a seasonally adjusted basis, current account surplus narrowed to €9.7 billion in July, from a revised €14.3 billion surplus in June. Separately, the Italy’s merchandise trade stood at a surplus of €4.5 billion in July, against the market expectations for a surplus of €2.0 billion.
In the Asian session, at GMT0300, the pair is trading at 1.3098, with the EUR trading 0.08% lower from yesterday’s close.
The pair is expected to find support at 1.3064, and a fall through could take it to the next support level of 1.3029. The pair is expected to find its first resistance at 1.3152, and a rise through could take it to the next resistance level of 1.3206.
In the day ahead, investors are eyeing Spanish bond auction along with the release of German ZEW economic sentiment and current situation data.
The currency pair is trading between its 20 Hr and 50 Hr moving averages.
