EUR/USD: Euro Pressured Amid Persistent Spain And Greece Concerns

EUR/USD: Euro Pressured Amid Persistent Spain And Greece Concerns

For the 24 hours to 23:00 GMT, EUR declined 0.14% against the USD and closed at 1.2947, as concerns over Spain and Greece weighed on the Euro.

Meanwhile, the Federal Reserve Bank of Boston President, Eric Rosengren stated that the Fed should buy mortgage bonds until the jobless rate drops to 7.25% and hold the target interest rate near zero until hitting 6.5% unemployment.

However, the Federal Reserve Bank of Atlanta President, Dennis Lockhart stated that the Fed should keep buying assets until it sees broad and deep structural improvements in the labor market. He also stated that the Fed would not change policy in response to Hurricane Sandy, as the impact of its destruction on US growth may be temporary and modest.

In the US economic news, construction spending increased 0.6% (MoM) to an annual rate of $851.6 billion in September, from the revised August estimate of $846.2 billion. Meanwhile, the consumer confidence index rose to a reading of 72.2 in October, from a downwardly revised reading of 68.4 in September. Separately, the ISM purchasing managers index (PMI) rose to 51.7 in October, from 51.5 in September. Additionally, labor productivity rose at a 1.9% annual rate in the Q3 FY2012. Also, initial jobless claims fell to 363,000 in the week ended October 27, from the previous week’s revised figure of 372,000. Moreover, ADP private sector employment increased by 158,000 jobs in October, the fastest pace in eight months.

In the Asian session, at GMT0400, the pair is trading at 1.2933, with the EUR trading 0.10% lower from yesterday’s close.

The pair is expected to find support at 1.2911, and a fall through could take it to the next support level of 1.2889. The pair is expected to find its first resistance at 1.2969, and a rise through could take it to the next resistance level of 1.3005.

Trading trends in the pair today are expected to be determined by the release of manufacturing PMI in Germany, France and the Euro-zone. In the US, investors eye the nonfarm payrolls, factory orders and the unemployment rate data.