Euro advances despite the drop in German industrial production

By @ibtimes on

The euro advanced against majors despite the unexpected drop German industrial production, where it was boosted earlier by the strong advance in Japanese shares.

German industrial production plummeted 1.5% in December from the revised -0.6% in November, while yesterday German factory orders also showed decline, but, in general, the German data did not affect the euro's rise.

In addition, China raised interest rate causing a decline in European shares on expectations China will tighten its monetary policy further to contain inflation.

The dollar index, which tracks the dollar movement versus a basket of major currencies, on the other hand, slipped for the second day to touch a low of 77.69 from the day's opening at 78.05.

Concerning the euro-dollar pair, it inclined on the daily charts in the absence of data from the euro area after finding support at 1.3580 which lifted the pair to 1.3645, while the day's high was recorded at 1.3665 and the low was at 1.3570.

The trading range for today is among the key support at 1.3425 and the key resistance at 1.3900.

Moving to the royal pair, it pared some of its decline witnessed today when it fell to a low of 1.6081 as it currently rebounded to 1.6100 yet it remains below the day's opening at 1.6106.

The pound was affected by Chancellor of the Exchequer George Osborne decision of increasing taxes on banks, which led to decline in demand on British assets.

The trading range for today is among the key support at 1.5620 and the key resistance at 1.5910.

With regard to the dollar-yen pair, it dropped to a low of 81.98 but surrendered some of the losses with the advance in the 4-hour and 1-hour charts which lifted the pair up to 81.18.

The pair recorded a high of 82.37, whereas the trading range for today is among the key support at 80.35 and the key resistance at 84.25.

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