EURUSD Movement
For the 24 hours to 23:00 GMT, EUR declined 0.66% against the USD and closed at 1.3212, as the European Central Bank (ECB) President, Mario Draghi indicated that interest rates in the Euro-zone would continue to remain low for some more time. The European Central Bank (ECB) in its policy meeting yesterday decided to maintain its benchmark interest rate unchanged at 0.5%, matching market expectations and held its deposit rate at zero and its marginal lending rate at 1.0%.
Earlier, the Euro gained traction, after manufacturing PMI in Italy, Germany and Euro-zone accelerated and registered growth for July. However, Spanish and French factory output failed to keep pace.
Separately, the greenback was lifted on solid jobs and manufacturing PMI data. Initial jobless claims in the US declined by 19K to a seasonally adjusted 326K in the week ended 27 July 2013, while for the week ended 20 July 2013, continuing jobless claims fell by 52K to a seasonally adjusted 2,951K. Moreover, the final manufacturing PMI rose to a reading of 53.7 in July.
In the Asian session, at GMT0300, the pair is trading at 1.3218, with the EUR trading marginally higher from yesterday’s close.
The pair is expected to find support at 1.3178, and a fall through could take it to the next support level of 1.3138. The pair is expected to find its first resistance at 1.3269, and a rise through could take it to the next resistance level of 1.3320.
Today’s major economic events include the nonfarm payrolls and the unemployment rate data in the US, as investors await for some more positive figures following yesterday’s upbeat US initial jobless claims data.
The currency pair is showing convergence with its 20 Hr moving average and is trading below its 50 Hr moving average.
