EURUSD Movement
For the 24 hours to 23:00 GMT on Friday, EUR rose marginally higher against the USD and closed at 1.2934, as positive industrial production data from the Euro-zone boosted investor sentiment.
On Friday, at the 2012 Annual Meetings of the International Monetary Fund (IMF) and World Bank Group in Tokyo, European Central Bank Executive Board member, Jorg Asmussen stated that there are “encouraging signs” that Greece can meet the fiscal targets for 2013 and that the Greek authorities should demonstrate that they can continue to stick to their commitments.
Meanwhile, the IMF Managing Director, Christine Lagarde stated that top priority was for the world to get beyond the current crisis and to restore sufficient growth to generate jobs for the millions of unemployed. Additionally, the Bank of Israel Governor, Stanley Fischer stated that world economy is “awfully close” to recession and backed the Federal Reserve’s increase in quantitative easing as strengthening its policy credibility.
In the Euro-zone, the seasonally adjusted industrial production rose 0.6% (MoM) in August, against the expectations for a 0.4% drop and compared to a 0.6% rise in the preceding month. Separately, the French current account deficit widened to €4.0 billion in August, compared to a revised €2.6 billion deficit in July.
Moreover, Italy’s harmonized consumer price index (HICP) rose 3.4% annually in September, in line with the preliminary estimates, while inflation as per the consumer price index remained stable at 3.2% annually in September.
In the Asian session, at GMT0300, the pair is trading at 1.2904, with the EUR trading 0.23% lower from yesterday’s close.
The pair is expected to find support at 1.2866, and a fall through could take it to the next support level of 1.2828. The pair is expected to find its first resistance at 1.2967, and a rise through could take it to the next resistance level of 1.3030.
Trading trends in the pair today are expected to be determined by the release of retail sales and business inventories data in the US.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
