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23 Apr 2013
Forex: EUR/USD holds just below 1.3000 ahead of NY session
FXstreet.com (Barcelona) - The EUR/USD is drowning below the 1.3000 handle after a tumble on the European opening that coincided with market disappointment following the Germany PMI. The pair fell from 1.3083 high to as low as 1.2974, but the market is still respecting the support at 1.3000/1.2995.
Despite the Bank of Spain’s announcement of 0.5% contraction of GDP Q1, the country was able to sell a total of €3.010B of 3-months (average yield at 0.12%, from 0.285% in March-19) and 9-month debt (average yield at 0.787%, from previous 1.007%).
The preliminary release of April German manufacturing PMI was expected to stay unchanged at 49.0 but dropped to 47.9 and services PMI eased from 50.9 to 49.2, instead of the slight rise to 51.0 as expected. French Services PMI rose from 41.3 to 44.1, beating the 42.0 expectations, while the manufacturing figure rose from 44.0 to 44.4, above 44.3 consensus.
The US economic calendar will have housing data: “March new home sales are expected to recover slightly from their decline in Feb, but we see the risks here biased towards a flat reading and slight disappointment even though the trend in US housing continues to be towards ongoing improvement”, wrote TD Securities analyst Annette Beacher.
“Still in the consolidation pattern above 1.3000 low and current intraday upswing from 1.3013 should be considered the final leg of the corrective phase, preceding a slide towards 1.2950 and probably 1.2890 support zone. Crucial resistance on the upside is 1.3110”, wrote Deltastock.com analyst Stoyan Mihaylov.
Despite the Bank of Spain’s announcement of 0.5% contraction of GDP Q1, the country was able to sell a total of €3.010B of 3-months (average yield at 0.12%, from 0.285% in March-19) and 9-month debt (average yield at 0.787%, from previous 1.007%).
The preliminary release of April German manufacturing PMI was expected to stay unchanged at 49.0 but dropped to 47.9 and services PMI eased from 50.9 to 49.2, instead of the slight rise to 51.0 as expected. French Services PMI rose from 41.3 to 44.1, beating the 42.0 expectations, while the manufacturing figure rose from 44.0 to 44.4, above 44.3 consensus.
The US economic calendar will have housing data: “March new home sales are expected to recover slightly from their decline in Feb, but we see the risks here biased towards a flat reading and slight disappointment even though the trend in US housing continues to be towards ongoing improvement”, wrote TD Securities analyst Annette Beacher.
“Still in the consolidation pattern above 1.3000 low and current intraday upswing from 1.3013 should be considered the final leg of the corrective phase, preceding a slide towards 1.2950 and probably 1.2890 support zone. Crucial resistance on the upside is 1.3110”, wrote Deltastock.com analyst Stoyan Mihaylov.