EURUSD Movement
For the 24 hours to 23:00 GMT, EUR declined 0.98% against the USD and closed at 1.3511, amid political turmoil in Spain and Italy. The yield on Spanish 10-year bonds rose, following allegations that Spanish Prime Minister, Mariano Rajoy, had misused campaign funds. Moreover, Spanish employment data revealed that the number of unemployed persons increased by 132.1K in January, from a decline of 59.1K registered in the previous month, thereby further pressurizing the Euro.
Meanwhile, the rising popularity of former Italian Premier, Silvio Berlusconi ahead of elections this month is also causing concerns among investors. Former Italian Prime Minister, Silvio Berlusconi gained ground in opinion polls, as he pledged to cut taxes and repay a reviled real estate tax if he is elected in the upcoming polls.
On the economic front, Euro-zone’s producer prices remained stable at 2.1% annually in December. Market had expected the rate to rise to 2.2%. Also, the Sentix investor confidence index rose to a reading of -3.9 in February, following a reading of -7.0 in January.
In the Asian session, at GMT0400, the pair is trading at 1.3487, with the EUR trading 0.18% lower from yesterday’s close.
The pair is expected to find support at 1.3435, and a fall through could take it to the next support level of 1.3383. The pair is expected to find its first resistance at 1.3588, and a rise through could take it to the next resistance level of 1.3689.
Amidst a string of economic releases later today, investors keenly await Euro-zone’s Markit services PMI and retail sales data. Meanwhile, in the US investors look forward to the MBA mortgage applications data and the ISM non-manufacturing PMI data.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
