EUR/USD: Euro-zone’s consumer confidence deteriorated in July


EURUSD Movement

For the 24 hours to 23:00 GMT, the EUR rose 0.25% against the USD and closed at 1.1601.

On the macro front, Euro-zone’s consumer confidence unexpectedly dropped to -15.0 in July, defying market expectations for a rise to a level of -12.0 and compared to a reading of -14.7 in the prior month. Separately, Germany’s GfK consumer confidence rose to a level of -0.3 in August, compared to a revised level of -9.4 in the prior month.

The greenback dollar declined against a basket of currencies yesterday, amid an unexpected increase in the US jobless claims.

Data showed that initial jobless claims unexpectedly climbed to 1416.0K in the week ended 17 July 2020, defying market expectations for a drop to a level of 1300.0K and compared to a revised reading of 1307.0K in the previous week. Meanwhile, the leading indicator rose 2.0% on a monthly basis in June, compared to a revised rise of 3.2% in the prior month.

In the Asian session, at GMT0300, the pair is trading at 1.1617, with the EUR trading 0.14% higher against the USD from yesterday’s close.

The pair is expected to find support at 1.1563, and a fall through could take it to the next support level of 1.1509. The pair is expected to find its first resistance at 1.1649, and a rise through could take it to the next resistance level of 1.1681.

Moving ahead, traders would keep a watch Markit manufacturing and services PMIs for July, slated to release across the euro area in a few hours. In the US, the Markit manufacturing and services PMIs, both July along with new home sales for June, would keep investors on their toes.

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

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