EURUSD Movement
For the 24 hours to 23:00 GMT on Friday, EUR declined 0.07% against the USD and closed at 1.2292, as risk sentiment weakened amid worries over the outlook for global economic growth and uncertainty over the possibility for fresh action by the European Central Bank (ECB) to boost the economy in the Euro-zone.
The Euro also came under pressure after Fitch Ratings warned that it has doubts on whether Spanish banks would require a further bailout beyond ?100 billion ($123 billion) already pledged, citing the weak economy and high costs of borrowing that the nation faces.
Meanwhile, the German economy ministry stated that Europe?s largest economy was expected to face ?significant risk? linked to the Euro-zone crisis.
In Greece, Deputy Finance Minister, George Mavragiannis, stated that the nation could raise more money by fighting rampant tax evasion than piling extra spending cuts to convince international lenders to keep it afloat.
On the economic front, in Germany, consumer price index rose 1.7% (YoY) in July, in line with market expectations. Additionally, the harmonized index of consumer prices (HICP) rose 1.9% annually in July, compared to a 2.0% rise in June. In France, the manufacturing production rose 0.1% (MoM) in June, compared to a 1.1% drop in May. Separately the industrial production remained stable in June against the market expectation of a 0.1% rise.
Over the weekend, Former Italian Prime Minister, Silvio Berlusconi, stated that his People of Freedom (PDL) party firmly opposed Italy leaving the Euro and believed that such a policy would be disastrous.
In the Asian session, at GMT0300, the pair is trading at 1.2295, with the EUR trading flat from Friday?s close.
The pair is expected to find support at 1.2252, and a fall through could take it to the next support level of 1.2210. The pair is expected to find its first resistance at 1.2327, and a rise through could take it to the next resistance level of 1.2360.
Today, German wholesale price index is expected to contract 0.4% (MoM) in July. Investors also await current account data in France later in a day.
The currency pair is trading between its 20 Hr and 50 Hr moving averages.
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