EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose 0.12% against the USD and closed at 1.3248.
Gains were limited as concerns over the outlook for the European economy weighed on investor sentiment following weak manufacturing activity data from the Euro-zone.
Sentiments were also dampened after Fitch Rating lowered the Greece’s credit grade two levels to ‘C’ from ‘CCC’, and stated that a default is highly likely in the near term.
On the other hand, the Bundesbank stated that Germany sold €4.28 billion of March 2014 notes against a target of €5 billion. The yield on the 2-year debt rose to 0.25% from 0.17% at a previous auction on January 18.
On the economic front, German manufacturing Purchasing Managers’ Index (PMI) unexpectedly fell to 50.1 in February, while the services PMI eased to 52.6 in February. The composite PMI in the Euro-zone slipped to 49.7 in February. However, the Euro-zone manufacturing PMI rose to 49.0 in February, from 48.8 in January. Also, industrial new orders in the Euro-zone advanced 1.9% (MoM) in December.
In the Asian session, at GMT0400, the pair is trading at 1.3258, with the EUR trading 0.07% higher from yesterday’s close.
The pair is expected to find support at 1.3224, and a fall through could take it to the next support level of 1.3191. The pair is expected to find its first resistance at 1.3279, and a rise through could take it to the next resistance level of 1.3300.
Trading trends in the pair today are expected to be determined by the release of IFO survey for business climate, current assessment and expectations in Germany.
The currency pair is trading just above its 20 Hr and 50 Hr moving averages.
