EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose marginally against the USD and closed at 1.3241.
The Euro initially traded lower, amid reports that indicated that Spanish economy returned to recession in the first quarter of 2012. Additionally, retail sales in Germany rose 0.8% in March, lower than the 1.1% rise expected by analysts.
Spanish statistical office, Ine reported that the gross domestic product in Spain contracted 0.3% (QoQ) in the first quarter of 2012, compared to 0.4% decline estimated by the central bank last week.
Additionally, rating downgrades of 16 Spanish banks by Standard & Poor’s Ratings Services also spooked investors’ sentiment.
However, Euro pared losses at end of the session as weaker-than-expected US personal spending and manufacturing activity data, added concerns about the pace of economic recovery in the US.
In Euro-zone, the M3 money supply rose 3.2% (YoY) in March, compared to 2.8% rise in February. Additionally, the consumer price index (CPI) in the Euro-zone retreated to 2.6% (YoY) in April, compared to 2.7% rise in March.
In the Asian session, at GMT0300, the pair is trading at 1.3243, with the EUR trading flat from yesterday’s close.
The pair is expected to find support at 1.3212, and a fall through could take it to the next support level of 1.3181. The pair is expected to find its first resistance at 1.3270, and a rise through could take it to the next resistance level of 1.3298.
The currency pair is trading just above its 20 Hr and 50 Hr moving averages.
