Traders Overlooked ECB’s Message At Its March Policy Meeting
GCI Financial | Mar 12, 2014 03:57AM ET
For the 24 hours to 23:00 GMT, EUR declined 0.14% against the USD and closed at 1.3856, after the ECB Vice President, Vitor Constancio opined that market participants did not fully understand the central bank’s message at its March policy meeting that it was still ready to act to stimulate growth in the economy. Furthermore, he pointed out that the ECB still had a slew of measures such as lower interest rate or quantitative easing, to use if the need arises.
Meanwhile, data from the Euro-zone member nations showed that, on a seasonally adjusted basis, Germany’s trade surplus narrowed more than market expectations to €17.2 billion in January, from a revised surplus of €18.3 billion recorded in the preceding month. Separately, a report revealed that Italy’s GDP declined 0.9% (YoY) in the fourth quarter, more than preliminary estimate of a 0.8% fall. However, another official data confirmed that, on a non-seasonally adjusted annual basis, Greece’s economy contracted less than expected in the fourth quarter of last year.
In the US, the commerce department reported that wholesales inventories rose more-than-expected 0.6% in January, as a result of build-up in unsold stocks. Meanwhile, the NFIB survey showed that its index on business optimism unexpectedly fell to a reading of 91.4 in February, from a level of 94.1 in January.
In the Asian session, at GMT0400, the pair is trading at 1.3853, with the EUR trading tad lower from yesterday’s close.
The pair is expected to find support at 1.3832, and a fall through could take it to the next support level of 1.3811. The pair is expected to find its first resistance at 1.3876, and a rise through could take it to the next resistance level of 1.3899.
Traders are expected to keep a tab o the Euro-zone’s industrial production data for further cues in the Euro.
The currency pair is showing convergence with its 20 Hr moving average and is trading just below its 50 Hr moving average.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.