EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose 0.07% against the USD and closed at 1.3769, after economic sentiment in the Euro-zone and Germany, its largest economy surpassed expectations. The ZEW investor confidence survey in Germany climbed for a fifth month, hitting a seven-year high of 62.0 in December following a reading of 54.6 in November. Similarly, the Euro-zone’s economic sentiment survey advanced to 68.3 this month from previous month’s 60.2, beating analysts’ projections of a reading of 60.0. Furthermore, the Bank of Greece indicated that the Greek economy would begin to recover next year. Separately, an official report by Eurostat showed the consumer price inflation (CPI) rose, at a seasonally adjusted 0.9% in November, in line with preliminary estimate and compared to an increase of 0.7% recorded in the previous month.
Meanwhile, the European Union finance officials began a meeting yesterday, to finally agree on a system for winding down failing region’s banks, which would be crucial in the region’s efforts to construct a full banking union. Additionally, Euro-group President, Jeroen Dijsselbloem has confirmed that the Euro-zone’s finance ministers have agreed to provide €1 billion to Greece as part of the third review of its ongoing adjustment programme.
In the US, the US Labour Department reported that the consumer price index (CPI) rose 1.2% in November, on an annual basis, short of analysts’ estimates of a 1.3% increase and after recording an increase of 1.0% in the preceding month. Furthermore, the US Bureau of Economic Analysis showed that the current account deficit fell unexpectedly to $94.84 billion in the Q3 2013, compared to a revised deficit of $96.61 billion recorded in the previous quarter. Additionally, the housing market index in the US increased to a reading of 58.0 in December, above the market expectations for a level of 55.0.
In the Asian session, at GMT0400, the pair is trading at 1.3774, with the EUR trading marginally higher from yesterday’s close.
The pair is expected to find support at 1.3736, and a fall through could take it to the next support level of 1.3698. The pair is expected to find its first resistance at 1.3798, and a rise through could take it to the next resistance level of 1.3822.
Later today, the US Federal Reserve would announce the highly awaited stance on the QE program.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
