EUR/USD pair was stable during early hours of Fridays European trade session after positive signal came from Germany, regarding consumer confidence and also on speculations about FED asset purchasing program exit in short-term.
During later hours of Asian session, EUR/USD reached 1.2944, session highest value, after which consolidation followed at 1.2930-40. The pair was expected to receive support at 1.2834, lowest from May 22nd, while resistance was expected at May 22nd high, 1.2998.
Earlier today it was announced that Gfk Consumer Confidence in Germany rose to a new high, supported by labour market stability and rising labour costs, which led to positive prospects for consumers to realize significant purchases. Consumer Confidence rose during June to 6.5 for fifth consecutive month. Previous month the reading showed 6.2. The indicator registered its highest value since September 2007. Forecasts indicated a level of 6.2. Data suggested that consumer spending might continue to drive Euro zones largest economy during this year. On the other hand, this improved value of the indicator was a result of diminished will of German consumers to make savings, as well as better business climate in the country.
US dollar remained supported after FED Chairman Bernanke testimony to the U.S. Joint Economic Committee on Wednesday. He said a decision to reduce the scale of Fed’s bond purchasing program could be taken in the next meetings if economic conditions kept improving.
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