EURUSD Movement
For the 24 hours to 23:00 GMT on Friday, EUR rose 0.98% against the USD and closed at 1.3121.
On Friday, the Dollar extended its losses after the Federal Reserve on Thursday announced plans to stimulate the economy with quantitative easing and following the weak US industrial production data.
Meanwhile, the Greece’s international creditors indicated that nation might get more time, to reach financial targets under its €130 billion rescue package but probably not more money saying a decision had to come by the end of October.
In economic news, inflation in the Euro-zone rose to 2.6% (YoY) in August, from 2.4% in July. The number of persons employed remained stable in the Euro-zone during the Q2 FY20212, after falling 0.3% sequentially in Q1 FY2012. Additionally, in Spain, the house price index retreated 14.4% annually in the Q2 FY2012, following a 12.6% drop in the Q1 FY2012.
Over the weekend, the European Central Bank (ECB) policymaker, Ewald Nowotny, stated that Spain would have to apply for a rescue package before qualifying for inclusion in the ECB’s plan to buy debt of struggling Euro-zone members.
Separately, the Bank of Italy Governor, Ignazio Visco, stated that the bank expects the nation to emerge from a deep recession next year, but it is not yet clear whether private investments would start to pick up.
In the Asian session, at GMT0300, the pair is trading at 1.3125, with the EUR trading marginally higher from Friday’s close.
The pair is expected to find support at 1.3030, and a fall through could take it to the next support level of 1.2936. The pair is expected to find its first resistance at 1.3194, and a rise through could take it to the next resistance level of 1.3264.
Trading trends in the pair today are expected to be determined by the release of Euro-zone current account and trade balance data.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
