EURUSD Movement
For the 24 hours to 23:00 GMT, EUR declined 0.09% against the USD and closed at 1.2322, after the Euro-zone gross domestic product shrank 0.2% in the second quarter, after a flat performance in the first three months of the year.
Adding to concerns, the Euro-zone’s industrial production fell 0.6% (MoM) in June, following a revised 0.9% rise recorded in May.
Meanwhile, the ZEW indicator of economic sentiment in the Euro-zone improved slightly to -21.2 in August. Additionally, the ZEW indicator of economic sentiment in Germany dropped to -25.5 in August, while the current conditions index retreated to 18.2 in August.
Earlier, the Euro was boosted by better-than-expected German and French gross domestic product data. The German economy grew 0.3% (QoQ) in the second quarter, at a slightly faster-than-expected pace, while the French gross domestic product recorded 0% growth in the second quarter, beating expectations for a 0.1% contraction and avoiding a recession.
Separately, the EU Economic and Monetary Affairs Commissioner, Olli Rehn stated yesterday that the EU and ECB are ready to act on the Euro-zone’s debt crisis once certain conditions are met.
On the other hand, a spokeswoman for Germany’s constitutional court stated that a new complaint at the Constitutional Court in Germany, would not delay the expected verdict on September 12 on the Euro-zone’s rescue funds and the EU’s fiscal pact.
In the Asian session, at GMT0300, the pair is trading at 1.2323, with the EUR trading flat from yesterday’s close.
The pair is expected to find support at 1.2298, and a fall through could take it to the next support level of 1.2273. The pair is expected to find its first resistance at 1.2367, and a rise through could take it to the next resistance level of 1.2411.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
