EURUSD Movement
For the 24 hours to 23:00 GMT on Friday, EUR rose 0.11% against the USD and closed at 1.3027, after strong US jobs data in September fuelled demand for higher-yielding currencies.
The US Labor Department indicated that initial jobless claims rose to 367,000 in the week ended September 29, from the previous week’s revised figure of 363,000. Market had expected jobless claims to climb to 370,000 in the previous week. The unemployment rate fell to 7.8% in September, from 8.1% in the previous month, the lowest level since January 2009.
Meanwhile, German factory orders declined 1.3% (MoM) in August, following a revised 0.3% rise in July. Spain’s industrial production dropped 3.2% (YoY) in August, following a 5.5% drop in July.
The Greek Prime Minister, Antonis Samaras, suggested that the European Central Bank (ECB) should help the nation by easing the terms of its Greek debt holdings. However, the ECB executive board member, Joerg Asmussen, told the newspaper that the bank cannot extend the maturity of Greece’s bonds or reduce their interest rates.
In the Asian session, at GMT0300, the pair is trading at 1.2986, with the EUR trading 0.31% lower from Friday’s close.
The pair is expected to find support at 1.2956, and a fall through could take it to the next support level of 1.2926. The pair is expected to find its first resistance at 1.3044, and a rise through could take it to the next resistance level of 1.3102.
Trading trends in the pair today are expected to be determined by the release of trade balance, current account and industrial production data in Germany and the Sentix’s investor confidence data in the Euro-zone.
The currency pair is trading just below its 20 Hr and 50 Hr moving averages.
