EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose 0.36% against the USD and closed at 1.3592, after an official data reported that the unemployment in Spain unexpectedly eased by 2,475 in November, as compared to a rise of 87,000 reported in October. Separate data indicated that the producer price inflation slumped to 1.4% (YoY) in October, its lowest since December 2009, after a 0.9% fall in September.
Meanwhile, yesterday the EU Economic and Monetary Affairs Commissioner, Olli Rehn stated that the recovery in the Euro-zone is still fragile and that the adjustment process in the region would continue weighing on growth for some time. He added that France still needs to implement few steps to boost growth and employment, as its tax increases are having the opposite effect and is leading to a growth slowdown in the nation. Additionally, he further highlighted that Italy is failing to cut debt quickly enough but is past the worst of its crisis. However, Italian Prime Minister, Enrico Letta criticised the EU Commissioner, Olli Rehn’s views about Italy and stressed that the nation’s public accounts are in order.
In the Asian session, at GMT0400, the pair is trading at 1.3588, with the EUR trading marginally lower from yesterday’s close.
The pair is expected to find support at 1.3539, and a fall through could take it to the next support level of 1.3490. The pair is expected to find its first resistance at 1.3626, and a rise through could take it to the next resistance level of 1.3664.
Later today, a raft of economic data, including retail sales, services PMI and the revised third quarter GDP numbers would shed light on the recovery in the Euro-zone.
The currency pair is showing convergence with its 20 Hr moving average and is trading above its 50 Hr moving average.
