Today, the European Stability Mechanism fund will sell its first bonds since the bailout fund was established, and the Japanese government has committed to being one of the buyers. Finance Minister Aso said the foreign exchange reserves will be used to buy some of the 2 billion Euros of 91-day bills set to go on sale in the early afternoon. The news gave Euro a boost in the overnight session, following yesterday’s climb back above 1.3100 against the US Dollar.
Today’s European session has seen EURUSD range between 1.3100 and 1.3125, as there has yet to be any significantly market moving news. Resistance could be provided by 1.3158, which has provided some resistance over the past few months, and support could be provided at the key 1.3000 level.
German exports were reported to have fallen 3.4% on continued weak European demand. Switzerland announced its unemployment rate at 3.3% as expected, and Italy reported a slightly better than expected 11.1% unemployment rate for November.
Greek Prime Minister Samaras will be meeting with German Chancellor Merkel in Berlin today ahead of the next tranche of Greece aid payment. Samaras said that things will get better and that Greece is delivering. Both Samaras and Merkel are also speaking at a conference in Berlin today.
In France, Finance Minister Moscovici said that 2013 will be difficult for the world economy, and he said that he heard concerns from China about the Euro debt crisis. However, he said that France maintains a goal of cutting deficit to 3% of GDP, and he is confident in the French and Euro-zone economy. Moscovici’s comments had no significant effect on price action.
Turning to Asia, S&P said that hurdles stand in the way of Japanese reflation, and that actions thus far haven’t been enough to stop deflation. In China, PBOC Adviser Yulu said that Chinese GDP growth will exceed 8% in 2013 and inflation won’t be a problem.
Looking ahead, Euro-zone consumer confidence will be released at 10:00 GMT, and German factory orders will be released at 11:00 GMT.
EURUSD Daily: January 8, 2013
— Written by Benjamin Spier, DailyFX Research
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.Learn forex trading with a free practice account and trading charts from FXCM.
Source: Daily fx