EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose 0.23% against the USD and closed at 1.3438. The US Dollar came under pressure after two key Fed officials expressed their reluctance for an early tapering of the central bank’s quantitative easing (QE) measure. Minneapolis Fed President, Narayana Kocherlakota, said that, “reducing the flow of purchases in the near term would be a drag on the already slow rate of progress of the economy toward the committee’s goals.” The President of Atlanta Fed, Dennis Lockhart, opined that he would want to see the nation’s inflation accelerate toward the Fed’s 2% goal target before the central bank decides to reduce the pace of its $85 billion monthly bond purchase.
However, losses in the greenback were capped after Dallas Fed President, Richard Fisher, later during the day, urged the markets to prepare for a slow-down in the pace of the Fed’s stimulus measures, adding that “that this programme cannot go on forever.”
Meanwhile, in Germany, consumer inflation rose to 1.2% (YoY) in October, in line with analysts’ expectations and compared to a similar rate of rise witnessed in the previous month.
In the Asian session, at GMT0400, the pair is trading at 1.3451, with the EUR trading 0.10% higher from yesterday’s close.
The pair is expected to find support at 1.3388, and a fall through could take it to the next support level of 1.3324. The pair is expected to find its first resistance at 1.3486, and a rise through could take it to the next resistance level of 1.3520.
Investors keenly await the release of Euro-zone’s industrial production data, which is broadly expected to stay flat in September, compared to a 2.1% fall seen in August.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
