EURUSD Movement
On Friday, EUR declined 0.15% against the USD and closed at 1.3340, after report showed that employment in the Euro area continues to drop in the Q1 2013. Additionally, the annual consumer price inflation in the Euro-zone rose in line with preliminary estimate in May.
Meanwhile in the US, the seasonally adjusted producer price index climbed 0.5% (MoM) in May, the first increase in three months, after declining 0.7% in the previous month. However, the University of Michigan’s consumer sentiment index fell unexpectedly in June after recording a six year high in May, while industrial production remained flat in May.
On Friday, the International Monetary Fund (IMF) indicated that though the US economy is gradually recovering than it was a year ago, the nation’s growth is still being restrained by government spending cuts and tax increases. The IMF also cautioned on the possible risks of the Federal Reserve’s “non timely” unwinding of the stimulus program and the collateral effects that such a policy could have on emerging economies.
In the Asian session, at GMT0300, the pair is trading at 1.3322, with the EUR trading 0.13% lower from Friday’s close.
The pair is expected to find support at 1.3292, and a fall through could take it to the next support level of 1.3262. The pair is expected to find its first resistance at 1.3355, and a rise through could take it to the next resistance level of 1.3388.
Trading trends in the pair today are expected to be determined by the release of trade balance in the Euro-zone. Finance ministers and central bankers from the G8 group are to hold the first day of a two day summit in Northern Ireland later today.
The currency pair is showing convergence with its 20 Hr moving average and is trading just below its 50 Hr moving average.
