EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose 0.45% against the USD and closed at 1.3312.
Yesterday, the European Central Bank (ECB) defended its bond-buying program in a German courtroom, arguing that the scheme many credit with saving the euro from collapse was within its mandate and had not generated unlimited risks. Investors now await an important decision by the German constitutional court over the legality of the ECB’s bond-purchase program.
Separately, ECB’s governing council member, Jozef Makuch indicated that the ECB is technically ready on all options on interest rates, including zero or negative interest rates, but there is no need to discuss them at this moment.
In economic news, the US small business confidence rose to an unexpected reading of 94.40 in May, while the BLS Job Openings and Labor Turnover Survey (JOLTS) indicated that the number of job openings in the US dropped by 118.0K to 3757.0K in April.
In the Asian session, at GMT0300, the pair is trading at 1.3312, with the EUR trading flat from yesterday’s close, as investors await German court proceedings on the European Central Bank’s bond-purchase program.
The pair is expected to find support at 1.3256, and a fall through could take it to the next support level of 1.3201. The pair is expected to find its first resistance at 1.3343, and a rise through could take it to the next resistance level of 1.3375.
Later today, CPI data is scheduled for release in Germany, Spain and Italy, along with industrial production data in the Euro-zone.
The currency pair is trading just above its 20 Hr and 50 Hr moving averages.
