EURUSD Movement
For the 24 hours to 23:00 GMT, EUR declined 0.86% against the USD and closed at 1.3066, after the European Central Bank (ECB) lowered its key interest rate by 25 basis points to 0.50%. Moreover, the ECB President, Mario Draghi stated that the bank is technically ready for negative deposit rates and noted downside risks to the economy.
In economic news, manufacturing PMI in the Euro-zone rose to a reading of 46.7 in April above the flash estimate of a reading of 46.5, while in Germany it PMI posted a reading of 48.1 in April, higher than the flash estimate of 47.9. In France it advanced to a reading of 44.4 in April, in line with market expectations and in Italy it climbed to a reading of 45.5 in April against the expected reading of 45.0. Additionally, in Spain, manufacturing PMI edged up to a reading of 44.7 in April, whereas market had expected a reading of 44.5 in April.
In the US, initial jobless claims decline unexpectedly by 18.0K to a seasonally adjusted 324K in the week ended 27th April 2013. Market had expected initial jobless claims to rise to 345K. Also, non-farm productivity advances less than expected in Q12013. Moreover, the trade deficit narrowed by 11.0% to $38.8 billion in March from a downwardly revised deficit of $43.6 billion recorded in the previous month.
In the Asian session, at GMT0300, the pair is trading at 1.3073, with the EUR trading marginally higher from yesterday’s close.
The pair is expected to find support at 1.3000, and a fall through could take it to the next support level of 1.2928. 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 1.3292.
Euro-zone’s PPI data is due for release later today, while in the US, nonfarm payrolls, factory orders, ISM non-manufacturing PMI and the unemployment rate would be tracked by investors.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
