EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose 0.16% against the USD and closed at 1.2972, amid positive economic news in the Euro-zone and Germany.
Euro-zone’s economic sentiment index rose to a reading of 85.7 in November, from a revised reading of 84.3 in the previous month. Meanwhile, industrial confidence index rose to -15.1 November, from a revised reading of -18.3 in October. Also, confidence in services improved to -11.9 in November, from -12.1 in the October. However, the consumer sentiment index fell to -26.9 in November, from -25.7 in the previous month.
Separately, in Germany, the seasonally adjusted unemployment rate remained stable at 6.9% in November, in line with market expectations. However, the number of unemployed people surged for the eighth straight month by 5,000 to 2.49 million in November.
In bond auction, Italy saw borrowing costs fall sharply at an auction of five and 10-year government bonds, with the yield on 10-year bonds down to 4.45%, a two year low and the yield on five-year bonds falling to 3.23%, also a two-year low.
In the US, GDP increased at an annual rate of 2.7% in the Q3 FY2012, compared to the 2.0% growth previously reported. Separately, jobless claims in the week ended November 24, declined to 393,000, a decrease of 23,000 from the previous week’s revised figure of 416,000. Meanwhile, the pending home sales index rose 5.2% to 104.8 in October, after edging up 0.4% to an upwardly revised 99.6 in September.
Separately, top Republican lawmaker, John Boehner, stated that the “fiscal cliff” negotiations had made little progress, after expressing optimism about reaching a deal with the White House just a day earlier.
In the Asian session, at GMT0400, the pair is trading at 1.2998, with the EUR trading 0.20% higher from yesterday’s close.
The pair is expected to find support at 1.2953, and a fall through could take it to the next support level of 1.2909. The pair is expected to find its first resistance at 1.3028, and a rise through could take it to the next resistance level of 1.3058.
Trading trends in the pair today are expected to be determined by the release of retail sales data in Germany, consumer spending and producer prices in France and the consumer price index and unemployment rate data in the Euro-zone. Investors keenly await ECB President Mario Draghi’s speech and the Bundestag vote on Greek aid scheduled later today.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
