EUR/USD: Euro reverses losses in the Asian session


EURUSD Movement

For the 24 hours to 23:00 GMT, the EUR declined 0.08% against the USD and closed at 1.1852.

In economic news, industrial production in France unexpectedly retreated 0.4% on a monthly basis in March, defying market expectations for a rise of 0.4%. In the previous month, industrial production had recorded a revised increase of 1.1%. On the other hand, the nation’s manufacturing production rebounded 0.1% on a monthly basis in March, falling short of market consensus for a gain of 0.9%. In the previous month, manufacturing production had registered a revised drop of 0.5%.

In the US, producer price index (PPI) climbed less-than-anticipated by 0.1% on a monthly basis in April, soothing fears of a strong acceleration in the nation’s inflation. The PPI had recorded an advance of 0.3% in the prior month, while markets were expecting for a rise of 0.2%. Meanwhile, the nation’s MBA mortgage applications eased 0.4% in the week ended 04 May, following a drop of 2.5% in the prior week.

In the Asian session, at GMT0300, the pair is trading at 1.1863, with the EUR trading 0.09% higher against the USD from yesterday’s close.

The pair is expected to find support at 1.1825, and a fall through could take it to the next support level of 1.1787. The pair is expected to find its first resistance at 1.1899, and a rise through could take it to the next resistance level of 1.1935.

Going ahead, market participants would look forward to the European Central Bank’s (ECB) economic bulletin report, set to release in a few hours. Additionally, the US consumer price index and monthly budget statement, both for April as well as initial jobless claims data, slated to release later today, will keep investors on their toes.

The currency pair is trading above its 20 Hr moving average and showing convergence with its 50 Hr moving average.

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