EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose marginally against the USD and closed at 1.3344, after a report showed that German business confidence improved unexpectedly in November, indicating that the Euro-zone’s largest economy is coping with the debt crisis better-than-feared.
The Ifo Institute reported that the business climate index in Germany unexpectedly rose to a reading of 106.6 in November, following a reading of 106.4 posted in October. Market had expected the index to drop to a reading of 105.2 in November. Additionally, the Current Conditions Index in Germany remained unchanged at 116.7 in November. Additionally, on a quarter-on-quarter basis, the GDP growth in Germany remained at 0.5% in 3Q FY2011, in line with the preliminary estimate.
In separate news, rating agency, Fitch, cut Portugal’s rating to BB+ from BBB-, stating that it expects the country’s Gross domestic Product (GDP) to contract by 3% in 2012.
In the Asian session, at GMT0400, the pair is trading at 1.3307, with the EUR trading 0.28% lower from yesterday’s close.
The pair is expected to find support at 1.3271, and a fall through could take it to the next support level of 1.3235. The pair is expected to find its first resistance at 1.3377, and a rise through could take it to the next resistance level of 1.3448.
Trading trends in the pair today are expected to be determined by release of German Import Price Index.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
