EURUSD Movement
For the 24 hours to 23:00 GMT, EUR declined marginally against the USD and closed at 1.3123, on concerns that Greece’s political leaders would fail to reach an agreement allowing the nation to receive a second bailout from international creditors.
Greek Prime Minister, Lucas Papademos, is set to meet the nation’s political leaders, later today, to discuss the implementation of additional fiscal measures required to secure a second bailout.
Adding to the negative sentiment, the Italian and Spanish government bond yields climbed yesterday as concerns that Greece could default next month spurred investors to book profits.
However, losses were limited as factory orders in Germany marked robust recovery in December that surpassed market expectations.
On the economic front, German factory orders rose 1.7% (MoM) in December, against the market expectation of a rise 1.0% in December. Moreover, the Sentix Investor Confidence Index in the Euro-zone improved to a reading of -11.1 in February, from -21.1 in January.
In the Asian session, at GMT0400, the pair is trading at 1.3099, with the EUR trading 0.19% lower from yesterday’s close.
The pair is expected to find support at 1.3037, and a fall through could take it to the next support level of 1.2976. The pair is expected to find its first resistance at 1.3151, and a rise through could take it to the next resistance level of 1.3203.
Investors are awaiting German industrial production data later today, to give further direction to the pair.
The currency pair is trading between its 20 Hr and 50 Hr moving averages.
