EURUSD Movement
For the 24 hours to 23:00 GMT, EUR declined 0.58% against the USD and closed at 1.3079, after European Central Bank council member, Jens Weidmann stated that policy makers might withdraw some of the emergency cash injected into the region’s banking system.
Meanwhile, in economic news, the ZEW Economic Sentiment Index in Germany rose to a reading of 22.3 in March, making it the highest rise since June. Additionally in France, the Harmonised Index of Consumer Prices (HICP) rose 2.5% (YoY) in February, while current account deficit increased to €4.2 billion in January.
Separately, Fitch Ratings upgraded Greece’s long-term sovereign credit rating from ‘Restricted Default’ to B-, and assigned ‘stable outlook’, after Greece’s bond swap wiped around €100 billion ($131 billion) off its debt.
Moreover, Spain agreed to demands from Euro-zone Finance Ministers to lower its budget deficit target for 2012 to 5.3% of GDP instead of its original 5.8% target.
Meanwhile the US posted gains yesterday, after the US Federal Reserve made no mention for a need for stimulus measures to revive the US economy. Additionally, news that majority of the nation’s big banks passed stress tests bolstered the greenback as well.
In the Asian session, at GMT0400, the pair is trading at 1.3075, with the EUR trading 0.03% lower from yesterday’s close.
The pair is expected to find support at 1.3022, and a fall through could take it to the next support level of 1.297. The pair is expected to find its first resistance at 1.3156, and a rise through could take it to the next resistance level of 1.3238.
Trading trends in the pair today are expected to be determined by Consumer Price Index and industrial production in Europe.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
