Posted on 21 December 2012.
GCI Forex News - EUR/USD: Euro gained as investor cheered positive US economic data, trading lower this morning
For the 24 hours to 23:00 GMT, EUR rose 0.18% against the USD and closed at 1.3237, as risk appetite increased among investors after the US government revised its Q3 FY2012 gross domestic product growth rates higher than expected.
In the US, on a quarterly basis, the Gross Domestic Product (GDP) rose to an annualised rate of 3.1% in 3Q FY2012, compared to a growth of 2.7% initially reported. Moreover, exports increased 1.9% in the 3Q FY2012, following a 5.3% rise recorded in the previous quarter, while imports fell 0.6% in 3Q FY2012, following a 2.8% increase reported in the previous quarter. Also, consumer spending rose 1.6% in 3QFY2012, compared to 1.4% increase previously reported, and a rise of 1.5% in the 2Q FY2012. Moreover, the Conference Board reported that on a monthly basis, its leading economic index in the US fell 0.2% in November, in line with the market expectations and compared to a revised 0.3% rise recorded in October. Separately, the National Association of Realtors (NAR) reported that, the existing home sales rose 5.9% to an annual rate of 5.04 million in November, marking its highest level since November 2009 and compared to a downwardly revised 4.76 million recorded in October.
Meanwhile, in the Euro-zone, consumer confidence rose to -26.6 in December, from -26.9 in November.
In Germany, the producer price index edged down 0.1% in November, after staying flat in the previous month. Economists were looking for a 0.2% decline. Separately, import prices remained unchanged compared to October, when they decreased by 0.6%. The index was forecast to fall 0.2% (MoM) in November.
In the Asian session, at GMT0400, the pair is trading at 1.3194, with the EUR trading 0.33% lower from yesterday’s close.
The pair is expected to find support at 1.3151, and a fall through could take it to the next support level of 1.3108. The pair is expected to find its first resistance at 1.3266, and a rise through could take it to the next resistance level of 1.3338.
Trading trends in the pair today are expected to be determined by the release of consumer confidence survey data in Germany. Important releases in the US include core personal consumption expenditure price index, Reuters/Michigan consumer sentiment index and personal spending data.
The currency pair is trading below its 20 Hr and 50 Hr moving average.