EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose 0.18% against the USD and closed at 1.3143, amid successful Spanish bond auction.
Spanish government sold €2.54 billion worth of 2- and 10-year bonds, exceeding the government’s targeted range of €1.5 billion to €2.5 billion. Additionally, France sold €3.55 billion of 2014 notes at a yield of 0.85%, while a sale of €2.7 billion of 2017 notes at a yield of 1.83%.
However, the gains were capped, amid rumors of a possible downgrade for France’s triple-A rating.
Separately, the Italian authority has warned on Wednesday, that the country would not be able to balance its budget as promised by 2013 and would extend by another two years. It has further slashed its growth forecast for 2012. Meanwhile, a group of leading German economic institutes has forecast that the German economy would grow 0.9% in 2012, an increase from a previous forecast of 0.8%.
In economic news, the consumer confidence index in Euro-zone fell to -19.8 in April, compared to -19.1 in March.
In the Asian session, at GMT0300, the pair is trading at 1.3142, with the EUR trading flat from yesterday’s close.
The pair is expected to find support at 1.3086, and a fall through could take it to the next support level of 1.3030. The pair is expected to find its first resistance at 1.3182, and a rise through could take it to the next resistance level of 1.3222.
With a series of Germany economic releases today, including producer price index (PPI) and IFO expectations, trading in the pair is expected to be influenced by the resulting cues from these releases.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
