EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose 0.96% against the USD and closed at 1.3178.
Yesterday, the International Monetary Fund (IMF) indicated that the Euro-zone remains the weakest part of the global economy. Moreover, it further emphasized that the European Central Bank should lower its benchmark interest to help bolster economic growth. Separately, the European Central Bank (ECB) President Mario Draghi indicated that the central bank expects a gradual recovery in the Euro-zone economic activity in the second half of 2013, however he cautioned that the outlook remain subject to downside risks.
On the economic front, Euro-zone’s consumer price inflation fell to 1.7% (YoY) in March, while the ZEW indicator of economic sentiment retreated to 24.9 in April. Meanwhile, Germany’s ZEW indicator of economic sentiment declined to 36.3 in April, and the current economic situation declined to a reading of 9.2 in April.
In the US, the consumer price index (CPI) slipped 0.2% in March, while the core CPI rose 0.1% in March to a reading of 232.76. Separately housing starts surged 7.0% to a seasonally adjusted annual rate of 1036K units in March, the highest level since June 2008. Also, industrial production climbed 0.4% in March, while capacity utilization advanced to 78.5% in March.
In the Asian session, at GMT0300, the pair is trading at 1.3174, with the EUR trading marginally lower from yesterday’s close.
The pair is expected to find support at 1.3067, and a fall through could take it to the next support level of 1.2959. The pair is expected to find its first resistance at 1.3242, and a rise through could take it to the next resistance level of 1.3309.
Trading trends in the pair today are expected to be determined by the release of the Fed’s Beige Book.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
