EU Summit In Focus

For the 24 hours to 23:00 GMT, EUR rose 0.66% against the USD and closed at 1.4267, on optimism that the European politicians would take steps to resolve the debt crisis.

EUR surged after the German Chancellor, Angela Merkel and French President, Nicolas Sarkozy reached a “joint position on Greece’s debt situation” before a summit today.

In the economic news, the consumer confidence index in the Euro zone declined to -11.4 in July, from a downwardly revised -10.3 in June.

Additionally in Germany, the producer price increased by 0.1% (M-o-M) in June, following a flat reading recorded in the previous month.

The pair has its first short term resistance at 1.4305, followed by the next resistance at 1.4363. The first support is at 1.4160, with the subsequent support at 1.4073.

The European Summit today in Brussels and Economic and Financial Affairs Council meeting is likely to receive increased market attention, along with other economic data due to be released later today in the Euro zone.