The Euro jumped 50 pips to a high of 1.2075 on the release of Euro-zone M3 data and German IFO survey results. The closely-watched IFO survey showed German business sentiment unexpectedly rose to a 15-year high of 105.4 in March, lifted by an improvement in current conditions and stronger expectations for the coming months. A slight drop to 103.0 from February’s 103.3 had been the forecast by many economists.
The European Central Bank ( ECB ) released data to show that February Euro-zone M3 money supply grew at an 8.0 pct annual rate, up from a 7.6 pct growth rate in January. Forecasts had been for a figure showing an annual growth rate of 7.7pct. The three-month average of the annual growth rate of M3 over the December-February period was reported at 7.6 pct compared with 7.5 pct in November-January period. This was in line with forecasts. The ECB also released data for the annual growth rate of M1, ( currency in circulation and overnight deposits ),showing a dip to 9.9 pct in February from 10.2 pct in January.

This move up by the Euro against the US Dollar takes it above its 200 day moving average around 1.2050. This should now act a support, but little movement is expected before the FOMC interest rate decision and statement this evening. Unless of course the March Consumer confidence data springs a surprise… Support for the Euro below remains at 1.1980 and resistance should be found at 1.2080 then 1.2120.