Topic: COZfx: Sabine Lautenschlaeger warns of long term risks to the Euro-zon
COZforex: For the past trading session, EUR marginally dropped against the USD and closed at 1.3670, as traders refrained from taking riskier bets during a lack of major economic releases from the Euro-zone.
In economic news, Sabine Lautenschlaeger, the European Central Bank candidate set to replace previous member, Joerg Asmussen, in her testimony to the EU Committee, warned of the possible risks of low-interest rates to the Euro-zone economy, by suggesting that “some of the measures should be exited as soon as possible because of their side-effects. Low interest rates, for example, stimulate economic activity, but are not without risks in the long run.”
Separately, data showed that Italian industrial output rise 1.4% in November, surpassing analysts’ expectations for the industrial output to remain flat, from a 0.4% decline registered in the previous month. Another report revealed that consumer inflation in Greece registered a reading of negative 1.7% in December, from previous month’s negative 2.9%.
In technical analysis, coz forex senior derivatives trader Daniel • Moloney said, EUR/USD is predicted to find support at 1.3636, and a decline through could take it to the next support line of 1.3612. Meanwhile, the pair is predicted to find its first resistance at 1.3684, and a rise through could take it to the next resistance line of 1.3708.
Traders are expected to keep a close watch on Euro-zone’s industrial production data and inflation data from Germany, France and Italy, due later today, for further guidance in the Euro.
(COZ forex UK)