EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose 0.67% against the USD and closed at 1.3959 after the ECB president signaled that the ECB may raise interest rates in the next month to fight inflationary pressures. The ECB left its key interest rate unchanged for the 22nd consecutive month at a record low of 1.0%. In the US, initial jobless claims fell to 368,000 in the week ended 26 February 2011, the lowest level since May 2008.
Eurozone GDP showed an unchanged expansion of 0.3% (Q-o-Q) in Q42010 compared to Q32010. Meanwhile, the composite PMI in the Eurozone stood at 58.2 in February, the highest level since July 2006, while the service sector PMI came in at 56.8, up from 55.9 in January.
The EU statistical bureau Eurostat reported that retail trade volume in the EU gained 0.4% (M-o-M) in January compared to the previous month.
In the Asian session, at 4:00GMT, the EURUSD is trading at 1.3959, flat from the levels yesterday at 23:00GMT.
The pair has its first short term resistance at 1.4007, followed by the next resistance at 1.4055. The first support is at 1.3880, with the subsequent support at 1.3801.
The currency pair is trading just above its 20 Hr moving average and well above its 50 Hr moving average.
