EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose 0.03% against the USD and closed at 1.3237, after Greek Prime Minister, Lucas Papademos, won parliamentary approval for second international bailout package.
Meanwhile, the Federal Reserve Chairman, Ben Bernanke stated that financial stress in Europe has eased recently, but risks remain for US financial institutions and money market funds.
In bond auction, Spain sold €3.6 billion of 12-month bills at an average yield of 1.418%, down from 1.899%, while for €1.45 billion of 18-month bills, yield came in at 1.711%, down from 2.3%. On the other hand, Greece sold €1.3 billion bonds maturing in June 2012 at an average yield of 4.25% compared to 4.61% in the previous auction.
Separately, the member of the European Central Bank’s governing council, Ewald Nowotny, stated that a two-track approach was necessary for Greece, by both supporting growth as well as ensuring it sticks to its austerity plan. He also added that Portugal was in a much stronger position than Greece in terms of its debt ratio and exports, although the risk remains.
Elsewhere, in Italy, the meeting between Italian Prime Minister, Mario Monti, and nation’s trade union on a historic reform to employment protection ended without any progress.
In the Asian session, at GMT0400, the pair is trading at 1.3267, with the EUR trading 0.23% higher from yesterday’s close.
The pair is expected to find support at 1.3198, and a fall through could take it to the next support level of 1.3130. The pair is expected to find its first resistance at 1.3310, and a rise through could take it to the next resistance level of 1.3352.
With no major release from Europe, the pair is expected to trade on trends in the greenback.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
