EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose 0.48% against the USD and closed at 1.3116.
The European Central Bank (ECB), in its monthly bulletin indicated that, it would closely observe the economic and monetary developments of the region and will assess any impact on the outlook for price stability.
Meanwhile, the International Monetary Fund (IMF) lowered its growth forecast for the US economy to 1.7% in 2013, form 2.0% estimated earlier, citing fiscal tightening in the nation due to ‘Sequester’.
In economic news, consumer price index (CPI) in Germany eased 1.4% (YoY) in March, following the 1.5% growth recorded in the previous month. Similarly, annual CPI in France grew 1.1% in March, in-line-with-market-expectations and following a 1.2% increase recorded in February. Across the Atlantic, initial jobless claims in the US dropped to 346K for the week ended April 6th, from a revised 388K in the previous week. However, continuing jobless claims increased more-than-expected to 3.079 million in the week ending March 30th. Also, import price inflation fell to 2.7% annually in March, from 0.3% drop recorded in the previous month, while export price inflation rose to 0.3% (YoY) in the same month, following the 1.5% increase recorded earlier.
In the Asian session, at GMT0300, the pair is trading at 1.3114, with the EUR trading marginally lower from yesterday’s close.
The pair is expected to find support at 1.3065, and a fall through could take it to the next support level of 1.3016. The pair is expected to find its first resistance at 1.3151, and a rise through could take it to the next resistance level of 1.3188.
The Euro-zone industrial production data for February and the US retail sales for March slated for release later today would be closely tracked for clarity on risk appetite among market participants.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
