FOREX: EUR/USD hovering over 1.2900

FXstreet.com (Barcelona) - The bloc currency is bouncing off lows on Monday, dragged to the proximities of 1.2890 after Japanese GDP figures during the third quarter have disappointed investors, contracting 3.5%, below estimates at -3.3% and prior reading at 0.3%. Chinese data also came in mixed, as CPI rose below expectations (2.0% vs. 2.1%) while retail sales and industrial production have gained 10.1% YoY and 14.9% YoY, respectively. The trade surplus has narrowed to CNY 19.6 billion, with exports rising only 2.9% in November vs. 11.6% in the previous month.

In another direction, Italian PM Mario Monti has announced his resignation after the Italian Parliament approves the 2013 budget, thus triggering early elections.

The cross is now up 0.14% at 1.2908 with next resistance at 1.2974 (high Dec.7) then 1.3000 (MA10d) and 1.3040 (prior intrad. low).
On the flip side, a breach of 1.2878 (low Dec.7) would bring 1.2875 (MA30d) and 1.2839 (61.8% of 1.2661-1.3127).