EURUSD Movement
For the 24 hours to 23:00 GMT, EUR declined 0.05% against the USD and closed at 1.2932, after the European Central Bank in its monthly report, indicated that the Euro-zone economy would shrink 0.2% in 2012. Additionally, it trimmed the growth estimate for 2013 to 1.0%. Moreover, it stated that unemployment in the Euro-zone would increase to 11.0% in 2012, in comparison with the previous forecast of 10.6%.
Meanwhile, the Greek Socialist leader, Evangelos Venizelos stated that Greece want to remain in the Euro-zone, but sought an end to “painful” austerity measures. He stated that he would meet conservative leader, Antonis Samaras, in an attempt to form a government and avoid a repeat election.
Meanwhile, European Central Bank Governing Council member, Ewald Nowotny stated that any talk about Greece’s exit from the monetary union is premature. He further added that what we have to discuss now and what we have to concentrate on is to solve this situation, and the key to solving this lies with the Greek government and political system.
On the economic front, French industrial production fell 0.9% (MoM) in March, compared to the rise of 0.9% in February and against the market expectation of 0.6% decline. Meanwhile, industrial production in Italy rose 0.5% (MoM) in March, compared to a fall of 0.7% in February.
In the Asian session, at GMT0300, the pair is trading at 1.2926, with the EUR trading 0.04% lower from yesterday’s close.
The pair is expected to find support at 1.2894, and a fall through could take it to the next support level of 1.2863. The pair is expected to find its first resistance at 1.2969, and a rise through could take it to the next resistance level of 1.3011.
Trading trends in the pair today are expected to be determined by the release of consumer price index and wholesale price index in Germany.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
