EURUSD Movement
For the 24 hours to 23:00 GMT, EUR declined 0.27% against the USD and closed at 1.3328, after the release of disappointing Euro-zone manufacturing and jobs data.
On the economic front, the unemployment rate in the Euro-zone rose to 10.8% in February, marking the highest level since 1997. Additionally, the manufacturing Purchasing Managers Index (PMI) in Euro-zone fell to a reading of 47.7 in March, in line with the preliminary estimate and compared to 49.0 in February. Meanwhile, the manufacturing PMI in Germany fell to a reading of 48.4 in March, better than the flash reading of 48.1. On a seasonally adjusted basis, the manufacturing PMI in France declined to a reading of 46.7 in March, weaker than the preliminary estimate of 47.6.
Further denting sentiment, the Athens-based Foundation for Economic and Industrial Research (IOBE) stated that Greece’s economy would contract further this year as austerity measures curb domestic demand. It further added that the economy would shrink by about 5.0% after contracting 6.8% in 2011.
In the Asian session, at GMT0300, the pair is trading at 1.3343, with the EUR trading 0.11% higher from yesterday’s close.
The pair is expected to find support at 1.3287, and a fall through could take it to the next support level of 1.3232. The pair is expected to find its first resistance at 1.3389, and a rise through could take it to the next resistance level of 1.3436.
The outcome of the GDP and Producer Price Index (PPI) in Europe are likely to set the tone for the Euro against the majors in today’s trading session.
The currency pair is trading just above its 20 Hr and 50 Hr moving averages.
