COZforex: For the past trading session, the EUR declined 0.32% against the USD and closed at 1.3547, as few of the top ECB policymakers signalled that the central bank had still more firepower to support the Euro-zone economy. An ECB Governing Council member, Erkki Liikanen highlighted the central bank’s readiness to act in order to support price stability and the economic recovery in the region while another policymaker, Jozef Makuch indicated that the ECB stood prepared to slash its interest rates further if its last week’s policy measures proved insufficient.

Separately, German Finance Minister, Wolfgang Schaeuble, citing the stubbornly low inflation in the Euro-zone’s economy, applauded the ECB’s last week policy action but at the very same time cautioned that the central bank should not leave its interest rates at a record low level for a longer time than necessary. Meanwhile, during a panel discussion at a conference in Frankfurt, an ECB Executive Board member, Benoit Coeure, hinted that the central bank was propounding measures to revive the region’s ABS market while suggesting that Euro-zone economy was not in crisis mode anymore.

In other economic news, French industrial production rebounded 0.3% in April but business sentiment in the nation declined in May. Separately, data showed that the Italian economy shrank 0.1% in the first quarter while industrial output in the nation rose at the fastest annual pace since August 2011 in April.

In a noteworthy event, the IMF warned against the fatigue in Greece coalition government and opined that the nation would only achieve its fiscal targets if efficiency in its public sector improves dramatically.

Meanwhile, in the US, the NFIB small-business optimism index rose more-than-expected last month to reach its highest reading since September 2007.

In technical analysis, COZFX strategist Nigel Boynton said, EUR/USD is predicted to find support at 1.3496, and a decline through could take it to the next support line of 1.3468. Meanwhile, the pair is predicted to find its first resistance at 1.3578, and a rise through could take it to the next resistance line of 1.3632.


(COZ forex UK)