EUR/USD: Euro trading flat in the Asian session, ahead of ECB’s December meeting minutes


EURUSD Movement

For the 24 hours to 23:00 GMT, the EUR rose 0.14% against the USD and closed at 1.1952.

In economic news, industrial production in France retreated 0.5% on a monthly basis in November, meeting market expectations and compared to a revised rise of 1.7% in the previous month.

The greenback declined against a basket of major currencies, on reports that China, the biggest buyer of US sovereign bonds, was ready to slow or halt its purchases of US Treasuries.

Macroeconomic data revealed that mortgage applications in the US rebounded 8.3% in the week ended 05 January, compared to a revised fall of 1.6% in the prior week.

Moreover, the nation’s import price index registered a less-than-expected rise of 0.1% on a monthly basis in December, compared to a revised gain of 0.8% in the prior month. On the contrary, the nation’s export price index unexpectedly eased 0.1% on a monthly basis in December. In the previous month, the index had climbed 0.5%.

In the Asian session, at GMT0400, the pair is trading at 1.1952, with the EUR trading flat against the USD from yesterday’s close.

The pair is expected to find support at 1.1911, and a fall through could take it to the next support level of 1.1869. The pair is expected to find its first resistance at 1.2006, and a rise through could take it to the next resistance level of 1.2059.

Moving ahead, traders would be paying close attention to the minutes of the European Central Bank’s (ECB) December meeting, along with the Euro-zone’s industrial production data for November, both due to release in a few hours. Further, the US initial jobless claims, producer price index and monthly budget statement, slated to release later in the day, will garner a lot of market attention.

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

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