EUR/USD: Euro trading higher in the morning session


EURUSD Movement

For the 24 hours to 23:00 GMT, the EUR declined 0.42% against the USD and closed at 1.1607 on Friday.

The US Dollar recovered from its initial losses against its major peers, following better than expected data on the US ISM non-manufacturing PMI.

The ISM non-manufacturing PMI unexpectedly rose to 60.1, against market expectations of a fall to a level of 58.5. In the prior month, the non-manufacturing PMI had registered a level of 59.8. However, the final Markit services PMI remained flat at 55.3 in October from last month, against market expectations of an advance to a level of 55.9. The preliminary figures had indicated an advance to 55.9.

US jobs market report showed a mixed picture about the economy. US non-farm payrolls advanced by 261.0K in October, compared to a revised advance of 18.0K in the prior month. Market expectation was for non-farm payrolls to increase by 313.0K. Meanwhile, the nation’s unemployment rate unexpectedly declined to 4.1% in the last month, from a rate of 4.2% in the previous month. Additionally, US average hourly earnings rose 2.4% YoY in October, missing market expectations for an advance of 2.7%. In the last month, average hourly earnings had climbed by a revised 2.8%.

Separately, US trade deficit expanded to $43.5 billion in September, compared to a revised trade deficit of $42.8 billion in the previous month. Market expectation was for the nation to register a trade deficit of $43.2 billion. Moreover, the final durable goods orders rose 2.0% in September, at par with market expectations. Durable goods orders had registered a similar rise in the prior month. Meanwhile, US factory orders registered a rise of 1.4% on a monthly basis in September, compared to a rise of 1.2% in the prior month. Markets were also expecting factory orders to advance 1.2%.

In the Asian session, at GMT0400, the pair is trading at 1.1614, with the EUR trading 0.06% higher from Friday’s close.

The pair is expected to find support at 1.1577, and a fall through could take it to the next support level of 1.1541. The pair is expected to find its first resistance at 1.167, and a rise through could take it to the next resistance level of 1.1727.

Moving ahead, Eurozone’s services PMI for October along with the Sentix investor confidence index for the region in November, both due to release today, would grab significant market attention. Also, Germany’s factory orders for September and services PMI data for October, scheduled today, would be closely assessed by investors. In the US, Fed Chairwoman, Janet Yellen’s speech, due later in the day, would be eyed by traders.

The currency pair is trading below its 20 Hr and 50 Hr moving averages.

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