EURUSD Movement
For the 24 hours to 23:00 GMT, EUR declined 0.06% against the USD and closed at 1.3127, amid persistent fears over Spanish debt woes.
Earlier, Spain’s Economy Minister, Luis de Guindos, admitted that the nation is heading towards its second recession since 2009, as the Spanish 10-year government bond yields spiraled above 6%.
Yesterday, Spanish treasury sold €2.09 billion worth of 12-month government bonds at an average yield of 2.62%, up from 1.41% at a previous auction, and €1.09 billion of 18-month bills at an average yield of 2.93%, up from 1.71%.
Euro initially traded higher, amid a flurry of positive economic data from Euro-zone and Germany. Separately, French President, Nicolas Sarkozy, stated that a weak Euro is good for the Euro-zone’s exports.
In Germany, the ZEW economic sentiment climbed to 23.4 in April, from 22.3 in March. Market had expected a drop to 20.3. Additionally, the ZEW current economic situation rose to 40.7 in April, from 37.6 in March. Market had expected a decrease to 35.3.
Additionally, in Euro-zone, the consumer price inflation rose to 1.3% in March, compared to 0.5% in February. Market had expected a rise to 1.2% in March. Additionally, the ZEW economic sentiment rose to 13.1 in April, from 11.0 in March. Market had expected a decline to 10.7 in April.
In the Asian session, at GMT0300, the pair is trading at 1.3116, with the EUR trading 0.08% lower from yesterday’s close.
The pair is expected to find support at 1.3080, and a fall through could take it to the next support level of 1.3044. The pair is expected to find its first resistance at 1.3162, and a rise through could take it to the next resistance level of 1.3209.
Trading trends in the pair today are expected to be determined by data release on current account and construction output in Euro-zone.
The currency pair is trading between its 20 Hr and its 50 Hr moving averages.
