EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose 0.20% against the USD and closed at 1.4360, as investors concerns quelled after the European Central Bank President Jean-Claude Trichet extended more support to the region’s sovereign-debt problems.
The European Central Bank raised its key interest rate to 1.5% from 1.25%, for the second time this year, where it had been since April and signalled of more interest-rate increase. Jean-Claude Trichet further stated that the ECB would suspend its minimum credit-rating threshold on Portuguese bonds after Moody’s Investors Service lowered the nation’s debt to junk.
In the Germany economic news, the industrial output rose by 1.2% (M-o-M) in May, following a revised 0.8% decline recorded in April.
In the Asian session, at 3:00GMT, the EURUSD is trading at 1.4350, 0.07% lower from the levels yesterday at 23:00GMT.
The pair has its first short term resistance at 1.4410, followed by the next resistance at 1.4469. The first support is at 1.4256, with the subsequent support at 1.4161.
Trading trends in the pair today are expected to be determined by data release on current account and trade balance in Germany.
The currency pair is showing convergence with its 20 Hr and its 50 Hr moving averages.
