For the 24 hours to 23:00 GMT, the EUR rose 0.48% against the USD and closed at 1.2393, as the Organisation for Economic Co-operation and Development (OECD) raised its growth forecast for Euro-zone to 2.3% in 2018 and 2.1% in 2019.
The US Dollar declined against its key counterparts, amid fresh political tensions in the US after the US President, Donald Trump, unexpectedly ousted the Secretary of State, Rex Tillerson following a series of public rifts.
The greenback extended its losses, after the latest inflation report suggested that the Federal Reserve (Fed) would hike interest rates only gradually this year.
Data indicated that the US consumer price index (CPI) advanced 0.2% on a monthly basis in February, meeting market expectations and compared to a rise of 0.5% in the previous month.
Other data showed that the nation’s NFIB small business optimism index climbed more-than-estimated to a level of 107.6 in February, compared to a reading of 106.9 in the prior month, while markets were expecting for an increase to a level of 107.1.
Separately, the OECD boosted its global growth forecast to 3.9% for both 2018 and 2019, up from a previous estimate of 3.6% for both years, citing a rebound in global trade and investments. Moreover, the organisation expects the US economy to grow 2.9% this year and 2.8% in 2019, due to recent enacted tax cuts, up from 2.5% and 2.1% estimated previously.
In the Asian session, at GMT0400, the pair is trading at 1.2405, with the EUR trading 0.10% higher against the USD from yesterday’s close.
The pair is expected to find support at 1.2343, and a fall through could take it to the next support level of 1.2280. The pair is expected to find its first resistance at 1.2440, and a rise through could take it to the next resistance level of 1.2474.
Moving ahead, traders would eye a speech by the European Central Bank’s (ECB) Chief, Mario Draghi, due in a few hours. Additionally, the Euro-zone’s industrial production data for January as well as Germany’s final inflation figures for February, would be on investors’ radar. Later today, the US advance retail sales for February and business inventories data for January, will keep investors on their toes.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.