Posted on 10 November 2012.
GCI Forex News - EUR/USD: Euro fell on Draghi’s pessimistic comments, trading higher this morning
For the 24 hours to 23:00 GMT, EUR declined 0.12% against the USD and closed at 1.2742, after the European Central Bank President, Mario Draghi stated that economic activity in the Euro-zone is expected to remain weak.
Moreover, the European Central Bank left its key interest rates unchanged at 0.75% for the fourth consecutive month, amid signs of an increasingly deteriorating Euro-zone economy with record high unemployment.
Also, yesterday, Spain sold €4.76 billion ($6.06 billion) of debt, including the longest-maturity security it has auctioned in more than a year, thereby easing pressure on Prime Minister, Mariano Rajoy from requesting a bailout before the end of this year.
On the economic front, German trade surplus narrowed to €17.0 billion in September, from a revised €18.1 billion in August. Exports declined 2.5% (MoM) in September, while imports dropped 1.6% (MoM) in September. Meanwhile, current account surplus widened to €16.3 billion in September, from a revised €12.5 billion in August. Separately, the French trade deficit dropped to €5.0 billion in September, from the downwardly revised €5.3 billion deficit in August.
In the Asian session, at GMT0400, the pair is trading at 1.2773, with the EUR trading 0.25% higher from yesterday’s close.
The pair is expected to find support at 1.2732, and a fall through could take it to the next support level of 1.2692. The pair is expected to find its first resistance at 1.2798, and a rise through could take it to the next resistance level of 1.2823.
Trading trends in the pair today are expected to be determined by the release of the consumer price index in Germany.
The currency pair is trading above its 20 Hr moving average and is showing convergence with its 50 Hr moving average.