COZforex: The euro pulled away from 7-week lows against the dollar on Tuesday, but gains looked set to remain limited as inconclusive Italian elections results sparked fears over renewed financial instability in the euro zone.
EUR/USD hit 1.3119 during European afternoon trade, the session high; the pair subsequently consolidated at 1.3092, gaining 0.22%. COZforex senior currency strategist Ian • Quigley said, EUR/USD is predicted to find support at 1.2955, and a fell through could take it to the next support line of 1.2855. Meanwhile, the pair is predicted to find its first resistance at 1.3237, and a rose through could take it to the next resistance line of 1.3419.
The euro looked likely to remain under pressure as fears that a deadlocked parliament in Italy would hinder efforts at economic reforms and reignite the crisis in the euro zone.
Italy’s center-left group, led by the Democratic Party's Pier Luigi Bersani, won the majority of votes in the lower house, the chamber of deputies, and was likely to receive the mandate to form a government. However, projections indicated that no party would be able to form a majority in the upper house or Senate, resulting in a deadlock. The yield on Italian 10-year bonds jumped to 4.87% on Tuesday from 4.37% on Monday, while the yield on Spanish 10-year bonds rises to 5.5% from 5.1% on Monday.
Separately, in the US, a survey from the National Association for Business Economics (NABE) indicated that, the US will grow gradually, but uncertainty surrounding the fiscal imbalances will reduce the real growth in 2013. Also, the Federal Reserve Bank of Dallas reported that the manufacturing activity index in the region declined to a reading of 2.2 in February, from a reading of 5.5 in the previous month.
Meanwhile, the Federal Reserve Bank of Chicago reported that its economic activity index retreated to a reading of -0.32 in January, from an upwardly reading of 0.25 recorded in the previous month.
The US was also to release a report on consumer confidence and official data on new home sales later Tuesday.
(COZ forex UK)
EUR/USD hit 1.3119 during European afternoon trade, the session high; the pair subsequently consolidated at 1.3092, gaining 0.22%. COZforex senior currency strategist Ian • Quigley said, EUR/USD is predicted to find support at 1.2955, and a fell through could take it to the next support line of 1.2855. Meanwhile, the pair is predicted to find its first resistance at 1.3237, and a rose through could take it to the next resistance line of 1.3419.
The euro looked likely to remain under pressure as fears that a deadlocked parliament in Italy would hinder efforts at economic reforms and reignite the crisis in the euro zone.
Italy’s center-left group, led by the Democratic Party's Pier Luigi Bersani, won the majority of votes in the lower house, the chamber of deputies, and was likely to receive the mandate to form a government. However, projections indicated that no party would be able to form a majority in the upper house or Senate, resulting in a deadlock. The yield on Italian 10-year bonds jumped to 4.87% on Tuesday from 4.37% on Monday, while the yield on Spanish 10-year bonds rises to 5.5% from 5.1% on Monday.
Separately, in the US, a survey from the National Association for Business Economics (NABE) indicated that, the US will grow gradually, but uncertainty surrounding the fiscal imbalances will reduce the real growth in 2013. Also, the Federal Reserve Bank of Dallas reported that the manufacturing activity index in the region declined to a reading of 2.2 in February, from a reading of 5.5 in the previous month.
Meanwhile, the Federal Reserve Bank of Chicago reported that its economic activity index retreated to a reading of -0.32 in January, from an upwardly reading of 0.25 recorded in the previous month.
The US was also to release a report on consumer confidence and official data on new home sales later Tuesday.
(COZ forex UK)