For the 24 hours to 23:00 GMT, EUR declined 0.63% against the USD and closed at 1.2524, amid weak service sector data from the Euro-zone.
In the Euro-zone, services purchasing manager index (PMI) continued to remain in contraction but rose slightly to 47.1 in June, compared to a reading of 46.8 in May, while region’s composite PMI stood at 46.4 in June. Additionally, retail sales fell more-than-expected by 1.7% (YoY) in May, against the market expectation of a 0.1% fall. However, on a monthly basis, retail sales unexpectedly rose 0.6% in May, against a contraction of 1.4% in April.
In Germany, service PMI fell to a reading of 49.9 in June, against the market expectation of 50.3. Moreover, in France, service PMI rose slightly to 47.9 in June.
In a bond auction, Germany raised €3.3 billion by selling new five-year bonds, short of the high-end target of €4.0 billion, with yield rising to 0.52%, compared to 0.41% in the prior comparable auction.
In the Asian session, at GMT0300, the pair is trading at 1.2528, with the EUR trading 0.03% higher from yesterday’s close.
The pair is expected to find support at 1.2490, and a fall through could take it to the next support level of 1.2453. The pair is expected to find its first resistance at 1.2583, and a rise through could take it to the next resistance level of 1.2639.
Trading trends in the pair today are expected to be determined by the release of European Central Bank (ECB) rate decision and German factory orders.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.