On Friday the euro trimmed gained positions against the US dollar in a subdued trade, but was still supported, following FED Chairman Bernankes recent testimony yesterday, which still pressured demand for the greenback.
EUR/USD came off session highs at 1.3149, recorded at 3:00 GMT, to reach 1.3126 at 12:45 GMT. The cross was still up by 0.12% for the day. Support was likely to be received at July 16th low, 1.3052, while resistance was to be met at July 10th high, 1.3206.
On Friday a report said that Producer Price Index (PPI) in Germany rose by 0.6% during June in line with projections on annual basis, accelerating in comparison with May, when it added 0.2%. However, in monthly terms, producer prices remained unchanged in June compared to May, but still above the projected 0.1% dip.
Additionally, another report said that house prices in Spain decreased by 2.4% in the second quarter of the year, following a 0.8% decline in the first quarter.
The euro received support earlier today after Italian parliament rejected the confidence vote towards the Minister of Interior Affairs Angelino Alfano, after the deportation of Kazakh oligarch Mukhtar Ablyazovs wife, as this eased concerns over a possible crisis in the countrys political system.
Meanwhile, in his second day of testimony on monetary policy before the Financial Services Committee in US Congress, FED Chairman Ben Bernanke reiterated that monetary policy will remain accommodative in the foreseeable future, even as the central bank begins to scale back its asset purchasing program. FED’s Quantitative Easing could be tapered at a faster pace, slower pace or even temporarily increased, if economic conditions allowed so.
Elsewhere, the euro traded lower against the British pound, as EUR/GBP cross dropped by 0.17% to 0.8597 at 13:06 GMT.
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