EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose 0.37% against the USD and closed at 1.2861.
On the Euro-zone’s economic front, the economic scenario did not seem very bright as Germany’s trade surplus and current account surplus both narrowed in May, while its industrial production dropped more than expectations in May. Moreover, Euro-zone’s sentix investor confidence dropped unexpectedly in July. However, the French business sentiment recorded a rise in June.
Also yesterday the Greek government secured €6.8billion (£5.8billion) bailout from the Troika following an agreement on further cuts to the public payroll across the country.
However, the European Union’s economic and monetary affairs commissioner, Olli Rehn, warned that Greece needs to boost the momentum of reform.
Separately, the Bundesbank Chief and a Governing Council member of the European Central Bank (ECB), Jens Weidmann, stated that the ECB cannot solve the Euro areas debt crisis on its own and has urged the national governments to adopt reforms and tighten its fiscal rules.
Meanwhile, the ECB president, Mario Draghi, reiterated the central bank’s stance to maintain accommodative monetary policy in the near future.
In the Asian session, at GMT0300, the pair is trading at 1.2861, with the EUR flat from yesterday’s close.
The pair is expected to find support at 1.2820, and a fall through could take it to the next support level of 1.2779. The pair is expected to find its first resistance at 1.2892, and a rise through could take it to the next resistance level of 1.2923.
Today, the European economy would be in focus as all Finance ministers from the European Union are to meet in Brussels.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
