(menafn – ecpulse)
The euro plunged on Thursday trading after unexpected drop in European economic confidence and on possible further Greek debt restructuring.
The European common currency retreated against majors after euro area economic confidence retreated to 94.4 in March, below forecasts and revised readings of 94.5.
OECD said today outlook for the euro area remains fragile and expected 0.4% contraction in the first quarter in the regions' three giant economies.
On the other hand, worries were renewed once again after Moritz Kraemer, head of sovereign ratings at Standard & Poor's, said Greece will probably resort to another debt restructuring and may need an aid from official creditors such as the International Monetary Fund.
Eyes will focus tomorrow on the euro area finance ministers' two-day meeting as it will decide whether there will be an agreement over boosting the size of the European rescue fund.
A draft statement written to euro area finance ministers showed that they will agree in their meeting tomorrow in Copenhagen on a one-year increase in the ceiling of the European lifeline to reach 940 billion euros through activating both ESM and the 240 billion euros left from the EFSF, where the temporary fund will remain until mid-2013 to be only used “in case the ESM capacity would prove insufficient.”
Now, the EUR/USD pair is trading around 1.3267, close to the day's low, while the high was recorded at 1.3345. The trading range for today is among key support at 1.3140 and key resistance at 1.3500.
On the flip side, the U.S. dollar rose against a basket of major currencies on the daily basis, where it may retest resistance at 79.30, which represents SMA level; the dollar index is currently hovering around 79.25 compared with the day's opening of 79.14.
Later in the day, the main focus will be on U.S. annualized GDP for the fourth quarter (third reading) and jobless claims.
Against the yen, the greenback is currently trading lower around 82.16 after recording a high of 82.96 and a low of 82.08. The suggested trading range for today is among key support at 81.50 and key resistance now at 84.15.
Finally, the sterling versus the greenback is currently trading lower around 1.5860, after rising to a high of 1.5933 while the low was seen at 1.5859, where it may get strong support around 1.5845 which represents SMA 200 level.
Data from the U.K. released today showed a drop in mortgage approvals while house prices plummeted to the most in two years, thereby pushing the pair to the downside. The expected trading range for today is among key support at 1.5730 and key resistance at 1.6125.