EURUSD Movement
For the 24 hours to 23:00 GMT on Friday, EUR rose 0.05% against the USD and closed at 1.2982.
On Friday, the German Finance Minister, Wolfgang Schaeublem, stated that the Spain does not need a European bailout citing the nation is doing the right thing and would be successful.
Separately, the Moody’s Investors Service affirmed Austria’s triple-A rating but maintained a negative outlook.
Meanwhile, the Greece Prime Minister, Antonis Samaras, stated that the nation leaving the Euro-zone is not an option and would be a disaster. Additionally, a senior Greece finance ministry official stated that the nation hopes to close a deal with international creditors on austerity package in about a week citing progress has been made. However he added there are still elements that need to be investigated and clarified.
In economic news, leading economic index in Germany rose 0.1% to a reading of 102.6 in July, while the coincident economic index grew 0.1% to 107.2 in July.
Over the weekend, the European Central Bank (ECB) Executive Board member, Benoit Coeure, stated that the recent economic and inflation data do not justify another cut in interest rates, citing that confidence was returning.
In the Asian session, at GMT0300, the pair is trading at 1.2939, with the EUR trading 0.33% lower from Friday’s close, on speculation that disagreement among leaders of the Euro-zone region on debt- crisis solutions is curbing prospects for growth.
Over the weekend, reports emerged that German Chancellor, Angela Merkel and the French President Francois Hollande were at odds as to when to roll out a program to centralize Euro-zone bank supervision.
The pair is expected to find support at 1.2895, and a fall through could take it to the next support level of 1.2852. The pair is expected to find its first resistance at 1.3015, and a rise through could take it to the next resistance level of 1.3092.
In the day ahead, investors await the release of IFO – business climate, current assessment and expectations data in Germany.
The currency pair is trading below its 20 Hr and 50 Hr moving average.
