EURUSD Movement
On Friday, EUR declined 0.13% against the USD and closed at 1.3586, as risk-appetite among investors reduced after the European Central Bank (ECB) warned the government of the Euro-zone periphery nations about the dangers of “market shocks” resulting from Fed’s QE-tapering.
Friday saw a mixed bag of economic data from the Eurozone. The Eurostat reported that consumer price index (CPI) in the region rose 0.9% (YoY) in November, surpassing analysts’ expectations for a rise of 0.8%. A separate report revealed that unemployment rate in the region declined to 12.1% in October, defying market expectations for the unemployment rate to remain unchanged at previous month’s level of 12.2%. Separately, German retail sector witnessed a 0.8% fall in the sales, compared to expectations of a 0.5% rise. The Italian CPI rose 0.6% (YoY) in November, versus a 0.8% rise expected. Spain reported a current account surplus of €0.339 billion in September, compared to a €2.530 billion in the previous month.
In the Asian session, at GMT0400, the pair is trading at 1.3603, with the EUR trading 0.13% higher from Friday’s close.
The pair is expected to find support at 1.3582, and a fall through could take it to the next support level of 1.3561. The pair is expected to find its first resistance at 1.3623, and a rise through could take it to the next resistance level of 1.3643.
Later today, Markit Economic is scheduled to release October manufacturing PMI data of Euro-zone, Germany, France, Italy & Spain.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
