EURUSD lower in European afternoon trade, January 16 2013


The euro moved away from the session highs against the greenback in EURUSD in stormy trade today, after Germany’s government cuts growth prognosis for this year, but the single currency was still supported among comments by a senior European Central Bank policymaker.

Currency pair EURUSD moved away from the level 1.3325, peak for this session, aiming 1.3271 during European afternoon trade, slipping with 0.25%.

The pair was EURUSD supposed to meet support at 1.3247, bottom from January 11 and resistance at 1.3392, peak from Tuesday and an almost 11-month high.

The euro weakened against the dollar after Germany’s Economy Ministry announced that the economy is going to grow just 0.4% this year, below its previous prognosis for 1% increase. It announced that growth would recover in next year, going up to 1.6%.

The statement came out after previous data from yesterday that pointed that the German economy was limited with 0.5% in the fourth quarter.

At the same time, official data indicated that consumer price inflation in the euro zone was still stable at 2.2% in December, without change from previous estimates.

The euro was traded near to nine-month highs against the pound, with EURGBP hitting the level 0.8303 and remained much lower against the yen, with EURJPY trading at 116.98.

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