EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose 0.29% against the USD and closed at 1.4161, after a report showed that inflation in the Eurozone rose more than expected, raising expectations that the European Central Bank would raise interest rates.
Inflation in the Eurozone rose to 2.6% (Y-o-Y) in March, compared to a rate of 2.4% in February.
The gains were however capped, after the results of stress tests of banks in Ireland showed that they would need €24 billion in extra capital.
In Germany, retail sales dropped 0.3% (M-o-M) in February, while the unemployment rate fell to 7.6% in March as the number of people out of work fell to 3.21 million. Moreover in France, producer price index rose 0.8% (M-o-M) in February.
In the Asian session, at 3:00GMT, the EURUSD is trading at 1.4157, 0.03% lower from the levels yesterday at 23:00GMT.
The pair has its first short term resistance at 1.4220, followed by the next resistance at 1.4284. The first support is at 1.4108, with the subsequent support at 1.4060.
With a series of Euro zone economic releases today, including manufacturing purchasing manager index and unemployment rate, trading in the pair is expected to be influenced by the resulting cues from these releases.
The currency pair is trading between its 20 Hr and 50 Hr moving averages.
