EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose marginally against the USD and closed at 1.3742, as traders’ appetite for risk-taking increased after the Russian President, Vladimir Putin ordered military troops to return to their base from Ukraine’s border. However, investors continued to remain cautious after the West announced that it would consider imposing economic sanctions onto Russia.
On the economic front, the Euro-zone’s producer price index registered a more-than-expected 1.4% (YoY) fall in January, following a 0.8% drop in the preceding month. Additionally, data from Spain showed that, the number of unemployed people in the nation unexpectedly declined by 1,900 in February, compared to an 113,000 rise recorded in the previous month.
Meanwhile, in the US, the Richmond Fed President, Jeffrey Lacker highlighted his expectations for an interest rate hike in the early 2015, adding that the US Fed has “tools to raise interest rates quickly” if it witnesses a rise in current low inflation pressures. Furthermore, he cited risks to the US economy due to the current tensions in Ukraine as manageable. Meanwhile, the former Fed Chief, Ben Bernanke, in a press conference at Abu Dhabhi, sounded optimistic on the US economy and opined that the chances of a 3% growth in the nation remain high, as supportive fiscal policy, combined with strengthening consumer spending and a recovering housing market would definitely stimulate the economy.
In the Asian session, at GMT0400, the pair is trading at 1.3733, with the EUR trading 0.07% lower from yesterday’s close.
The pair is expected to find support at 1.3712, and a fall through could take it to the next support level of 1.3690. The pair is expected to find its first resistance at 1.3769, and a rise through could take it to the next resistance level of 1.3804.
Market participants keenly await Euro-zone’s GDP data, which is widely expected to show an improvement in the fourth-quarter. Also later today, traders would eye Euro-zone’s Markit service PMI, composite PMI and retail sales data for further cues in the Euro. Meanwhile, in the US the Fed Beige Book along with the non-manufacturing PMI would keep investors on their toes.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
