EUR/USD: Euro Trading Tad Higher In The Asian Session As Investors Remain Cautious Amid US Budget Talks

For the 24 hours to 23:00 GMT, EUR declined marginally against the USD and closed at 1.3161.

In the Euro-Zone, the seasonally adjusted basis trade surplus narrowed to €7.9 billion in October, compared to a surplus of €11.0 billion in the previous month.

Meanwhile, the Conference Board leading economic index in France fell 0.5% (MoM) in October to 114.4 and the coincident index retreated 0.1% to 103.9 in October. Separately, in Italy, on an unadjusted basis, trade surplus climbed to €2.45 billion in October, from €0.40 billion recorded in September.

On the US economic front, the New York Fed’s manufacturing index fell to -8.1 in December, from -5.2 in November.

Meanwhile, the President of the Federal Reserve Bank (Fed) of Richmond, Jeffrey Lacker, stated that the central bank’s latest policy actions are unlikely to do much to reduce the unemployment rate to below 6.5% and carries a 'material' risk of sparking inflation. Additionally, he projected that the US economy would grow 2.0% in 2013.

Separately, the European Central Bank (ECB) President, Mario Draghi stated that, the bank’s new powers to oversee Euro-Zone banks would help restore confidence in the sector and revive interbank lending.

In the Asian session, at GMT0400, the pair is trading at 1.3173, with the EUR trading marginally higher from yesterday’s close.

The pair is expected to find support at 1.3152, and a fall through could take it to the next support level of 1.3131. The pair is expected to find its first resistance at 1.3187, and a rise through could take it to the next resistance level of 1.3200.

Trading trends in the pair today are expected to be determined by the release of the current account and the NAHB housing market index data in the US.