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EURUSD moves higher, but gains are limited, February 22 2013

ForexZig.com February 22, 2013
EURUSD

EURUSD

The euro moved higher against the American dollar in EURUSD today, but was still close to six-month lows after Thursday’s downbeat euro zone economic reports increased concerns over the region’s perspective for growth.

Currency pair EURUSD was traded at the level 1.3219 during late Asian trade, which is the session high. Later on the pair consolidated at 1.3217, rising with 0.21%.

The pair was supposed to meet support at 1.3161, bottom from yesterday and resistance at 1.3290, Thursday’s peak.

The euro stayed under pressure after official data released yesterday indicating that the services purchasing managers’ index for the euro zone fell from 48.6 to 47.3 in February, disproving expectations for a rise to 49.2.

The euro zone manufacturing PMI decreased to a seasonally adjusted 47.8 from a final reading of 47.9 in January. Experts had prognosis that the index will improve to 48.4.

Germany’s manufacturing PMI increased to 50.1 from a final reading of 49.8 in January, moving into expansion territory for the first time in 12 months, but under expectations for a rise to 50.5.

At the same time, the greenback was still supported after the minutes of the Federal Reserve’s January meeting indicated that policymakers discussed the slowing or stopping of bond purchases even before the job market improves, among concerns that the policy may cause instability in financial markets.

The euro was steady against the pound with EURGBP trading at 0.8648.

Later this day, the Ifo Institute is about to release a report on German business climate.

 

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