EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose 1.18% against the USD and closed at 1.3242, after European Central Bank (ECB) President, Mario Draghi stated that a cut in the bank’s deposit rate below zero was not on the cards for now.
Moreover, he added that the Euro-area economy would show improvement by the end of the year. The ECB also left its benchmark interest rate on hold at a record low 0.5% and left deposit rates at zero.
On the economic front, Germany recorded a more-than-expected drop in its April factory orders. Meanwhile, the ILO unemployment rate in France rose to 10.8% in the Q1 2013.
On the other hand, initial jobless claims in the US dropped to 346K in the week ended 01 June 2013.
In the Asian session, at GMT0300, the pair is trading at 1.3257, with the EUR trading 0.11% higher from yesterday’s close.
The pair is expected to find support at 1.3129, and a fall through could take it to the next support level of 1.3000. The pair is expected to find its first resistance at 1.3346, and a rise through could take it to the next resistance level of 1.3434.
Later today, trade balance data in France and Germany is scheduled for release. Meanwhile investors expect an annual improvement in Germany’s industrial production data. In the US Labor Department’s nonfarm payrolls report would provide insight into the jobs market and offer a clue as to how long the Fed intends continue buying bonds to boost the economy.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
