EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose 0.26% against the USD and closed at 1.2968. Yesterday, investors were left disappointed as Spain did not request financial aid over the weekend and as investors speculated that request for a bailout is unlikely till regional elections on October 21.
Meanwhile, the German Finance Minister, Wolfgang Schaeuble stated that the central banks that inject money into the system should ensure a timely exit from providing generous liquidity indicating that it is important to ensure price stability in the Euro area.
Moreover, the Greek Prime Minister, Antonis Samaras stated that Greece would successfully conclude austerity talks with its lenders, to continue receiving the bailout funds it needs, in time for the EU summit.
On the other hand, the Federal Reserve Bank of New York President, William C. Dudley, stated that the central bank would not cut back record monetary stimulus too quickly when the economy begins to gain strength. Separately, the Federal Reserve Bank of St. Louis President, James Bullard, stated that the US economic growth would probably pick up to 3.5% in 2013, pushing the unemployment rate down to close to 7%.
On the US economic front, retail sales rose 1.1% (MoM) in September, compared to a revised 1.2% rise in August. Business inventories rose 0.6% in August, compared to a 0.8% rise in July.
In the Asian session, at GMT0300, the pair is trading at 1.2962, with the EUR trading marginally lower from yesterday’s close.
The pair is expected to find support at 1.2913, and a fall through could take it to the next support level of 1.2863. The pair is expected to find its first resistance at 1.2995, and a rise through could take it to the next resistance level of 1.3028.
Trading trends in the pair today are expected to be determined by the release of consumer price index, trade balance and economic sentiment in the Euro-zone and the ZEW Survey of economic sentiment and current situation in Germany.
The currency pair is showing convergence with its 20 Hr moving average and is trading just above its 50 Hr moving average.
