EURUSD Movement
For the 24 hours to 23:00 GMT, EUR declined 1.03% against the USD and closed at 1.3383, after European Central Bank (ECB) President, Mario Draghi stated that the ECB is keeping a watchful eye on the Euro’s recent strength for possible signs of Euro-zone inflation. He stated that that economic weakness in the Euro would persist during the early part of 2013, but the economy should start to recover “later” in the year. As expected by investors, the European Central Bank (ECB), in its most recent policy meeting left its interest rates unchanged at a record low 0.75% for a seventh consecutive month in February.
On the economic front, the seasonally adjusted industrial production in Germany increased 0.3% (MoM), following a downwardly revised 0.2% fall in November. Meanwhile, trade deficit in France widened to €5.3 billion in December, larger than the expected deficit of €4.2 billion and compared to a €4.3 billion deficit recorded in the previous month.
In the US, the Federal Reserve Bank (Fed) of Chicago President, Charles Evans stated that, the central bank might need to keep up its purchases of bonds through the end of this year or into the next, and may even need to add to the program if fiscal restraint is bigger-than-expected. Meanwhile, for the week ended 2 February 2013, initial jobless claims in the US fell to 366,000, the lowest level since March 2008 and compared to the previous week’s revised figure of 371,000.
In the Asian session, at GMT0400, the pair is trading at 1.3410, with the EUR trading 0.20% higher from yesterday’s close.
The pair is expected to find support at 1.3327, and a fall through could take it to the next support level of 1.3244. The pair is expected to find its first resistance at 1.3536, and a rise through could take it to the next resistance level of 1.3662.
In economic releases, Germany’s trade balance and current account data are likely to receive increased market attention due later today.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
