EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose 0.11% against the USD and closed at 1.3359.
However, losses in the greenback were limited as the US retail sales and jobs data came in better than market expectations.
In the week ended 8 June 2013, initial jobless claims in the US declined by 12K to a seasonally adjusted 334K its lowest level since early May, against expected 346K in the last week. Meanwhile, retail sales rose a seasonally adjusted 0.6% (MoM) in May to $421.1 billion, higher than the expected 0.4% rise in May.
Separately, in in its latest monthly economic report, the European Central Bank (ECB) stated that the price pressure in the Euro area is likely to remain subdued over the medium term and inflation expectations are well anchored.
Meanwhile, in Germany, the Wholesale Price Index dropped 0.1% annually in May, slower compared to a 0.4% fall registered in the previous month.
In other developments, the World Bank in its semiannual Global Economic Prospects report, lowered its global economic growth outlook for 2013, citing more than anticipated recession in Europe and a recent slowdown in some emerging markets. It stated that the global economy is expected to grow 2.2% in 2013, weaker than its January forecast of 2.4% growth.
In the Asian session, at GMT0300, the pair is trading at 1.3348, with the EUR trading marginally lower from yesterday’s close.
The pair is expected to find support at 1.3287, and a fall through could take it to the next support level of 1.3226. The pair is expected to find its first resistance at 1.3400, and a rise through could take it to the next resistance level of 1.3452.
Euro-zone’s consumer price index data is one of the major economic releases that is expected to impact the trading trend in the pair. Meanwhile, in the US, the producer price index and industrial production data are expected to show some improvement in May.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
