EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR rose 0.09% against the USD and closed at 1.2369.
Yesterday, the European Central Bank (ECB) President, Mario Draghi stated that trade tariffs announced by the US and China are not expected to have a major impact on the Euro-zone economy, but they can dent investor confidence and spark retaliation.
The US Dollar plunged against a basket of currencies, as heightened tensions over Syria and Russia dented investor sentiment.
As per the minutes of the Federal Reserve’s (Fed) March meeting, policymakers broadly agreed that the US economy is growing at a strong pace while inflation has picked-up in recent months. Additionally, minutes indicated that the central bank remains on track for a gradual path of policy tightening, but a few officials expressed concerns that rising inflation may call for a faster pace of interest rate hikes. Further, board members voiced concerns that a heated trade war would hammer the US economic growth.
On the macro front, the US consumer price index (CPI) unexpectedly dropped 0.1% on a monthly basis in March, dipping for the first time in 10 months and defying market expectations for a flat reading. The CPI had risen 0.2% in the previous month. Further, the nation’s budget deficit narrowed to $208.7 billion in March, after recording a deficit of $215.2 billion in the prior month, while markets were anticipating the nation to record a deficit of $186.00 billion.
Other data revealed that the MBA mortgage applications in the US fell 1.9% in the week ended 06 April, compared to a drop of 3.3% in the previous week.
In the Asian session, at GMT0300, the pair is trading at 1.2366, with the EUR trading slightly lower 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 1.2321. The pair is expected to find its first resistance at 1.2392, and a rise through could take it to the next resistance level of 1.2419.
Trading trend in the Euro today is expected to be determined by the release of the ECB’s March meeting minutes, due in a few hours. Moreover, the US initial jobless claims data, slated to release later in the day, will be on investors’ radar.
The currency pair is showing convergence with its 20 Hr moving average and trading above its 50 Hr moving average.
