EURUSD Movement
For the 24 hours to 23:00 GMT, EUR declined 0.89% against the USD and closed at 1.2935, as concerns over Euro-zone debt crisis continued to weigh on investor sentiment.
Italian Former Economy Minister, Giulio Tremonti, cautioned that the biggest risk for Italy would be to have to ask the International Monetary Fund for assistance.
The German government has sold €4.1 billion of 10-year bonds, in a closely-watched auction, with the yield falling to 1.93% from a level of 1.98% in a November auction.
In Germany, the services Purchasing Managers’ Index rose to 52.4 in December, compared to 50.3 posted in November.
In France, the consumer spending fell 0.1% (MoM) in November, compared to an upwardly revised 0.1% rise in the previous month. The final services Purchasing Managers’ Index (PMI) rose to 50.3 in December, above the flash estimate of 50.2.
In Euro-zone, the services Purchasing Managers’ Index rose to 48.8 in December, compared to its preliminary estimate of 48.3. Additionally, on an annual basis, the Consumer Price inflation came in at 2.8% in December, compared to 3.0% recorded in November.
In the Asian session, at GMT0400, the pair is trading at 1.2929, with the EUR trading 0.05% lower from yesterday’s close.
The pair is expected to find support at 1.2859, and a fall through could take it to the next support level of 1.2790. The pair is expected to find its first resistance at 1.3035, and a rise through could take it to the next resistance level of 1.3142.
Trading trends in the pair today are expected to be determined by data release on retail sales in Germany and Producer Price Index (PPI) in Euro-zone.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
