EURUSD Movement
On Friday, the EUR rose 0.15% against the USD and closed at 1.3697, after Euro-zone’s GDP rose more-than-expected 0.5% (YoY) in the fourth quarter on a seasonally adjusted basis, compared to a 0.3% (YoY) drop registered in the preceding quarter. Positive sentiment was also fuelled after the Euro-zone’s Germany and France reported a better-than-expected rise in its fourth-quarter GDP results.
In a noteworthy development, Moody’s rating agency upgraded its rating outlook on Italy to “stable” from “negative” and asserted that the Italian government’s financial strength and a decline in risks from contingent liabilities was the main reason for the affirmation of the nation’s Baa2 rating.
In the US, Reuters/Michigan consumer sentiment index stood pat at previous month’s level of 81.2 in February, contradicting analysts’ expectations for a fall to a reading of 80.6. Meanwhile, Dallas Fed President, Richard Fisher dismissed concerns on the recent batch of lacklustre US economic data, by stating that the Fed should continue tapering the size of its stimulus package as “the US economy has been moving in the right direction.”
Separately, a survey from the Philadelphia Fed revealed that economists projected growth in the US economy to slow-down at an annual rate of 2.0% in the current quarter, from a previous estimate of 2.5%. However, the report also forecasted the economy to expand 3.0% in the second-quarter, compared to a prior forecast of 2.9%.
In the Asian session, at GMT0400, the pair is trading at 1.3710, with the EUR trading 0.09% higher from Friday’s close.
The pair is expected to find support at 1.3682, and a fall through could take it to the next support level of 1.3655. The pair is expected to find its first resistance at 1.3731, and a rise through could take it to the next resistance level of 1.3753.
Traders are expected to keep a tab on the outcome of Eurogroup meeting, expected to commence later today.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
