EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose 0.24% against the USD and closed at 1.3340, after German industry output rebounded in June, surging at its fastest pace in nearly two years. Data revealed that German industrial production jumped 2.4% in June, surpassing market expectations for a 0.3% increase.
Moreover, trade deficit in France narrowed to €4.44 billion in June, compared to an upwardly revised deficit of €5.70 billion recorded in the previous month. Also, a report by the Bank of France revealed that the French economy is expected to grow by 0.1% in the third quarter of 2013 (3Q FY2013).
Yesterday, the Cleveland Fed President, Sandra Pianalto, stated that central bank can scale back its $85 billion a month asset purchase program if the labour market holds the gains it has made recently.
In the Asian session, at GMT0300, the pair is trading at 1.3336, with the EUR trading marginally lower from yesterday’s close.
The pair is expected to find support at 1.3285, and a fall through could take it to the next support level of 1.3235. The pair is expected to find its first resistance at 1.3366, and a rise through could take it to the next resistance level of 1.3397.
With the Euro trading marginally lower against the US Dollar in today’s session, markets are expected to keep a tab on today’s domestic events as well as initial jobless claims data from the US due later today for further direction to market sentiment. Another major driver for the pair will be the ECB monthly report, which is expected to add volatility.
The currency pair is trading above its 20 Hr and 50 Hr moving average.
