EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose 0.23% against the USD and closed at 1.3738. However, Euro’s gains against the greenback were capped after three of the top Fed officials expressed their support for a Fed-QE-taper in the month of December. St. Louis Fed President, James Bullard, citing the recent improvement in the US jobs markets, suggested that a “small taper” in December could be the appropriate policy course, whereas, President of the Richmond Fed, Jeffrey Lacker highlighted the possibility for the Fed to discuss tapering plans at its December policy meeting. In a separate remark, Dallas Fed President, Richard Fisher, warned that the cost of the Fed’s $85-billion-a-month asset-purchase programme “far exceeds” its benefits and urged the central bank to trim the size of its monthly asset-purchase programme “at the earliest opportunity.”
On the economic front, a report showed that the Sentix investor confidence in the Euro-zone economy declined unexpectedly to a level of 8.0 in December, from previous month’s reading of 9.3. Meanwhile, another report revealed that, on a seasonally adjusted basis, Germany’s trade surplus narrowed more-than-expected to €16.8 billion in October, from a surplus of €18.7 billion registered in the preceding month. Similarly, on a seasonally adjusted basis, industrial production in Germany declined 1.2% (MoM) in October, defying analysts’ call for a rise of 0.8% and compared to a 0.7% drop witnessed in the preceding month.
In the Asian session, at GMT0400, the pair is trading at 1.3758, with the EUR trading 0.15% higher from yesterday’s close.
The pair is expected to find support at 1.3711, and a fall through could take it to the next support level of 1.3665. The pair is expected to find its first resistance at 1.3786, and a rise through could take it to the next resistance level of 1.3815.
European Central Bank (ECB) President, Mario Draghi’s speech, expected to commence later today, would likely determine the Euro’s further trading trend.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
