EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose marginally against the USD and closed at 1.2710.
The Euro was buoyed after German newspaper, Bild Zeitung reported that Greece would get a lump sum of over €44 billion ($55.9 billion) in aid under a German proposal to bundle remaining bailout installments this year, citing unnamed sources in the German government.
On the economic front, Euro-zone’s ZEW Centre for Economic Research indicated that the economic sentiment index fell to a reading of -2.6 in November, compared to a reading of -1.4 in October. Separately, the ZEW Centre for Economic Research reported that German economic sentiment index declined to -15.7 in November, while the current situation index dropped to 5.4 in November. In France, the current account deficit narrowed to €3.3 billion in September, from a €3.6 billion deficit in August.
In the US, the Treasury Department reported a budget deficit of $120 billion in October, compared to a surplus of $75.0 billion posted in September.
Separately, the Federal Reserve Vice Chairman, Janet Yellen stated that the US interest rates may need to stay near zero until early 2016 to forcefully lift employment and backed a proposal to link the Fed’s zero interest-rate policy to progress toward meeting its goals for inflation and employment rather than to a calendar date.
However, the Treasury Secretary, Timothy Geithner stated that it would be necessary to raise personal income tax rates on the wealthiest Americans to reduce long-term budget deficits, because capping deductions would not raise enough revenue.
In the Asian session, at GMT0400, the pair is trading at 1.2726, with the EUR trading 0.13% higher from yesterday’s close.
The pair is expected to find support at 1.2682, and a fall through could take it to the next support level of 1.2638. The pair is expected to find its first resistance at 1.2749, and a rise through could take it to the next resistance level of 1.2773.
Trading trends in the pair today are expected to be determined by the release of consumer price index data in France and the industrial production data in the Euro-zone. Meanwhile, in the US, retail sales and producer price index data are awaited. Investors would also focus on minutes of the FOMC’s latest policy-setting meeting.
The currency pair is trading just above its 20 Hr and 50 Hr moving averages.
