EURUSD Movement
For the 24 hours to 23:00 GMT, EUR declined 0.31% against the USD and closed at 1.3083, amid disappointing Euro-zone economic data. Additionally, speculation over a French ratings downgrade further weighed on the Euro. However, the French Finance Minister, Pierre Moscovici dismissed talk of an imminent cut to the country’s credit rating, stating that the speculation was unfounded.
On the economic front, Euro-zone’s unemployment rate rose to a seasonally adjusted 11.8% in November, in line with market expectations and compared to a rate of 11.7% in October. Separately, economic confidence improved more-than-expected to 87.0 in December, from a reading of 85.7 recorded in the previous month. Meanwhile, industrial confidence rose to -14.4 in December, compared to a revised rise to -15.0 in the previous month. Also, consumer confidence stood at -26.5 in December, compared to -26.9 in the previous month, while business confidence improved slightly to -1.12 in December, from a revised -1.17 in November. Meanwhile, retail sales climbed a less than expected 0.1% (MoM) in November, compared to a revised 0.7% drop in the previous month.
In Germany, exports decreased 3.4% (MoM) in November, compared to a revised 0.2% rise in October, while imports retreated 3.7% (MoM) in November, from a revised 2.9% rise in October. Additionally, trade surplus advanced to €17.0 billion in November, from €15.7 billion in the prior month, whereas current account surplus widened to €15.3 billion in November, from €13.2 billion in October. Separately, manufacturing orders fell a seasonally and calendar-adjusted 1.8% (MoM) in November, compared to a 3.8% growth recorded in October.
In France, trade deficit narrowed to €4.33 billion in November, from €4.71 billion in October. Meanwhile, export of goods declined to €36.49 billion in November, from €37.53 billion in the previous month. Additionally, the value of imports fell to €40.83 billion in November, from €42.24 billion in October.
Yesterday, Greek Prime Minister, Antonis Samaras in a joint statement with German Chancellor, Angela Merkel, stressed that his country was determined to win back credibility in Europe, and was delivering on the reforms and austerity needed to achieve that goal. German Chancellor, Angela Merkel, stated Germany must play a part in helping Greece fight unemployment.
In the Asian session, at GMT0400, the pair is trading at 1.3075, with the EUR trading 0.06% lower from yesterday’s close.
The pair is expected to find support at 1.3044, 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 1.3119, and a rise through could take it to the next resistance level of 1.3164.
Investors keenly await the release of GDP data in the Euro-zone and the industrial production data in Germany.
The currency pair is trading just below its 20 Hr and 50 Hr moving averages.
