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EURUSD moved down after Fed minutes, January 4 2013

ForexZig.com January 4, 2013
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EURUSD

The euro moved down against the greenback in EURUSD today, in spite of the positive German data, after Federal Reserve officials displayed their concerns about continuing to expand monetary easing measures.

During the late Asian trade, the currency pair EURUSD hit the level 1.3016, which is the lowest level for this pair since December 12, later on it found consolidation at at 1.3020, going down with 0.21%.

The pair EURUSD was supposed to find support at 1.2929, bottom from December 11, and resistance at 1.3097, peak from December 12.

The euro ignored the official data pointing that retail sales in Germany increased by 1.2% in November, disproving expectations for a 0.8% increase, after a 1.3% decrease the previous month.

Investors are still nervous after the minutes of the Fed’s December policy meeting revealed that officials began debating an end to bond-buying as early as this year even while preparing to boost stimulus to a new record.

Besides, the minutes urged concerns over a balance sheet that it could grow to more than USD4 trillion while potentially distorting financial markets and providing less support to growth.

At the same time, the euro was traded steady against the pound with EURGBP hitting the level 0.8106.

Later this day, the euro zone is about to release preliminary data on consumer price inflation, also the U.S. is expected to publish official data on nonfarm payrolls and the overall unemployment rate.

Moreover, the Institute of Supply Management is going to show a report on service sector activity.

EURUSD

EURUSD, H1

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