EURUSD Movement
For the 24 hours to 23:00 GMT on Friday, EUR rose 1.47% against the USD and closed at 1.2814, extending its Thursday’s gains, after the European Central Bank (ECB) on Thursday, unveiled a new plan for potentially unlimited bond buying to lower the borrowing costs for heavily indebted nations like Spain and Italy.
The greenback came under pressure on Friday, after data showed that the US nonfarm payrolls increased by 96,000 in August, well below forecasts for 125,000 new jobs, boosting speculation that the Federal Reserve could act as soon as its meeting this week.
In Germany, exports increased 0.5% (MoM) and imports rose 0.9% (MoM) in July. Also, trade surplus fell to €16.9 billion in July from a revised €18.0 billion surplus in June. Also, current account showed a surplus of €12.8 billion in July. On a seasonally adjusted basis, industrial production climbed 1.3% (MoM) in July, compared to a revised 0.4% fall in June.
In France, trade deficit narrowed to €4.3 billion in July, from a revised €6.1 billion deficit in June. Moreover, Spanish industrial production fell 5.4% (YoY) in July, slower than the 6.1% decrease seen in June.
Over the weekend, in Greece, the leaders of the three parties in Greece’s coalition government failed to agree on a package of spending cuts worth €11.5 billion ($14.7 billion).
Meanwhile, the French President, Francois Hollande, stated that his government was likely to revise down its 2013 economic growth forecast to around 0.8% from an existing estimate of 1.2%.
In the Asian session, at GMT0300, the pair is trading at 1.2787, with the EUR trading 0.21% lower from Friday’s close.
The pair is expected to find support at 1.2670, and a fall through could take it to the next support level of 1.2554. The pair is expected to find its first resistance at 1.2860, and a rise through could take it to the next resistance level of 1.2934.
Trading trends in the pair today are expected to be determined by the release of Euro-zone Sentix investor confidence data.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
