EUR/USD: Euro trading a tad lower in the morning session


EURUSD Movement

For the 24 hours to 23:00 GMT, the EUR declined 0.28% against the USD and closed at 1.1221.

The European Central Bank (ECB), in its monetary policy meeting accounts, reiterated that the central bank was ready to adjust the size and composition of the PEPP, as well as the full range of instruments including the TLTROs, policy interest rates and forward guidance. Also, the central bank agreed to offer euro loans against collateral to central banks outside the euro area to backstop funding markets amid the coronavirus pandemic.

On the macro front, Germany’s GfK consumer confidence survey rose to -9.6 in July, more than market expectations for rise to a level of -12.0 and compared to a revised reading of -18.6 in the earlier month.

The US dollar rose against the euro, as surge in coronavirus cases and trade tensions between the US and the Europe increased demand for the safe haven currency.

In the US, the annualised gross domestic product dropped 5.0% in the first quarter of 2020, compared to a revised fall of 4.8% in the prior month. The preliminary figures had indicated a drop of 5.0%. Additionally, initial jobless claims eased to 1480.0K in the week ended 19 June 2020, undershooting market anticipations for a drop to a level of 1300.0K and compared to a revised reading of 1540.0K in the previous month. Meanwhile, durable goods orders climbed 15.8% in May, more than market forecast for a rise of 10.9% and compared to a revised fall of 18.1% in the prior month.

In the Asian session, at GMT0300, the pair is trading at 1.1220, with the EUR trading marginally lower against the USD from yesterday’s close.

The pair is expected to find support at 1.1189, and a fall through could take it to the next support level of 1.1159. The pair is expected to find its first resistance at 1.1252, and a rise through could take it to the next resistance level of 1.1285.

In absence of key macroeconomic releases in the Euro-zone today, investors would direct their attention to the US personal income and spending, both for May, along with the Michigan consumer sentiment index for June, slated to release later today.

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

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