EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR declined 0.39% against the USD and closed at 1.3591, in a subdued trading session, as most of the markets in the Euro-zone were closed on account of a public holiday. Negative sentiment for the Euro-bloc’s shared currency was fuelled after an ECB policymaker, Christian Noyer, opined that low and declining inflation in the Euro-zone was the greatest short-term problem in the economy as it strengthened deflation prospects and posed a threat to the region’s economic recovery. Additionally, the Sentix investor confidence index in the Euro-zone fell for a second consecutive month to reach a six-month low level of 8.5 in June.
Meanwhile, in the US, the St. Louis Fed President, James Bullard, pointed out that the US economy at present was much nearer in attaining its macroeconomic goals than at any point in the past five-years. Additionally, he opined that a strong economic growth in the nation would enable the world’s largest economy to witness an earlier-than-expected hike in its short-term interest rates. However, Eric Rosengren, the President of the Boston Fed, urged the central bank to refrain from raising its short-term interest rates until the economy was “within one year” of reaching the Fed’s employment and inflation goals.
In the Asian session, at GMT0300, the pair is trading at 1.3590, with the EUR trading a tad lower from yesterday’s close.
The pair is expected to find support at 1.3558, and a fall through could take it to the next support level of 1.3526. The pair is expected to find its first resistance at 1.3646, and a rise through could take it to the next resistance level of 1.3702.
During the later course of the day, traders would eye Italy’s GDP and industrial output data, along with a report on French industrial production.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
