EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose marginally against the USD and closed at 1.3349. The Euro was bolstered as the board member of the European Central Bank (ECB), Joerg Asmussen, indicated that the Euro zone’s economy is in a better position than a year ago despite the weak growth posted in the fourth quarter of 2012, citing positive budget consolidation efforts in individual countries, the European Union’s fiscal pact and ECB actions.
Also, the Bundesbank indicated that the German economy is set to return to growth in the first quarter of 2013 (1Q FY2013), after contracting in 4Q FY2012 and that the growth would gradually pick-up pace during the reminder of the year.
However, gains in the Euro were capped as European Central Bank (ECB) President Mario Draghi warned that warned that though Euro-zone economies started 2013 in a more stable financial environment, the bloc’s economy remains weak following three quarters of contraction and will only recover gradually later in the year.
In economic news, current account surplus in the Euro-zone narrowed to €13.9 billion in December, compared to an upwardly revised surplus of €15.9 billion recorded in November. Meanwhile, on a non-seasonally adjusted basis, Euro-zone’s current account surplus widened to €27.0 billion in December, higher than an upwardly surplus of €20.8 billion reported in the previous month.
In the Asian session, at GMT0400, the pair is trading at 1.3352, with the EUR trading marginally higher from yesterday’s close.
The pair is expected to find support at 1.3322, and a fall through could take it to the next support level of 1.3292. The pair is expected to find its first resistance at 1.3381, and a rise through could take it to the next resistance level of 1.3410.
Trading trends in the pair today are expected to be determined by the release of the construction output and ZEW survey – economic sentiment data in the Euro-zone and Germany.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
