EURUSD Movement
For the 24 hours to 23:00 GMT, EUR declined 0.33% against the USD and closed at 1.3069.
During the European session, the Euro received some support after Spain’s yield on 10-year government bonds fell to the lowest level since April. In a bond auction, the Spanish Treasury sold €1.51 billion worth of ten-year government bonds at an average yield of 5.45%, down from 5.66% at a similar auction last month. Additionally, it sold €1.63 billion of three-year debt at an average yield of 3.227%, down from 3.956% at a similar auction last month.
Meanwhile, European Union leaders in Brussels have agreed to have the legal framework for the Euro-zone banking regulator in place by the end of the year, and it would be implemented through the course of 2013. Investors exercised caution as European Union leaders gathered on the second day of a two-day summit in Brussels, later today.
Separately, in the US, initial jobless claims in the week ended October 13, jumped to 388,000 from the previous week’s revised figure of 342,000. Market had expected the jobless claims to show a more modest increase to 365,000.
In the Asian session, at GMT0300, the pair is trading at 1.3070, with the EUR trading marginally higher from yesterday’s close.
The pair is expected to find support at 1.3041, and a fall through could take it to the next support level of 1.3012. The pair is expected to find its first resistance at 1.3114, and a rise through could take it to the next resistance level of 1.3158.
Trading trends in the pair today are expected to be determined by the release of the producer price index in Germany and the current account data in the Euro-zone.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
