- EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose 0.24% against the USD and closed at 1.2937, after European investor confidence rose to its highest level in eight months. Sentix investor confidence came in at -16.8 for December, both beating expectations for -16.9 and higher than last month’s -18.8 confidence survey.
The Euro also received support after Italian Prime Minister, Mario Monti eased concerns over his decision to resign, saying there was no danger of a vacuum ahead of an election.
Moreover, European partners urged the next Italian government to stick to Prime Minister Mario Monti’s reform agenda, after his decision to resign early and Silvio Berlusconi’s return to frontline politics weighed on financial markets.
Meanwhile, trade surplus in Germany narrowed to €15.8 billion in October, compared to a surplus of €16.9 billion recorded in September. Additionally, current account surplus declined to €13.6 billion in October, compared to an upwardly revised surplus of €17.3 billion recorded in the previous month. On a monthly basis, the industrial production in France fell 0.7% in October, compared to a 2.7% drop recorded in the previous month.
In the Asian session, at GMT0400, the pair is trading at 1.2950, with the EUR trading 0.10% higher from yesterday’s close.
The pair is expected to find support at 1.2903, and a fall through could take it to the next support level of 1.2856. The pair is expected to find its first resistance at 1.2979, and a rise through could take it to the next resistance level of 1.3009.
Trading trends in the pair today are expected to be determined by the release of ZEW Survey-economic sentiment in Euro-zone and German wholesale price index.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
