EURUSD Movement
On Friday, EUR rose 0.20% against the USD and closed at 1.3135.
In economic news, Germany’s annual producer price index registered a 0.6% rise in June, while industrial orders in Italy recorded a 3.2% (MoM) rise in May and its industrial sales climbed 0.1% (Mom) in May
Over the weekend, G20 agreed to prioritise boosting growth and jobs for the near-term priority considering the “fragile and uneven” global recovery. Moreover, finance chiefs from the G20 group of advanced and emerging nations also backed an action plan drawn up by the Organisation for Economic Cooperation and Development (OECD) to crack down on tax avoidance by multinationals and help replenish diminished budgets.
In the Asian session, at GMT0300, the pair is trading at 1.3156, with the EUR trading 0.16% higher from Friday’s close. Late yesterday, Portuguese President Anibal Cavaco Silva indicated that the government of Prime Minister Pedro Passos Coelho would stay in office until its term ends in 2015, ruling out the possibility of snap polls and ending a weeks-old political crisis and keep an international bailout on target.
The pair is expected to find support at 1.3111, and a fall through could take it to the next support level of 1.3067. The pair is expected to find its first resistance at 1.3185, and a rise through could take it to the next resistance level of 1.3215.
With no major releases scheduled in the Euro-zone today trading trend in the pair shall be determined by the Chicago Fed national activity index and existing home sales data in the US.
The currency pair is trading just above its 20 Hr and 50 Hr moving averages.
