EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR declined 0.23% against the USD and closed at 1.1059.
On the data front, Euro-zone’s final consumer confidence index dropped to a level of -7.1 in August, at par with market expectations and confirming the preliminary figures. In the prior month, the index had registered a reading of -6.6. On the contrary, the region’s economic sentiment indicator unexpectedly rose to a level of 103.1 in August, defying market anticipations for a to fall to a level of 102.3. In the prior month, the indicator had recorded a level of 102.7. Further, the business climate indicator unexpectedly advanced to 0.1 in August, compared to a revised level of -0.1 in July. Market participants had expected the indicator to drop to a level of -0.14.
Separately, in Germany, the preliminary consumer price index (CPI) rose 1.4% on an annual basis in August, less than market expectations for a gain of 1.5%. In the previous month, the CPI had registered a rise of 1.7%. Meanwhile, the nation’s seasonally adjusted unemployment rate remained unchanged at 5.0% in August, in line with market expectations.
The US dollar gained ground against its peers, as worries over US-China trade deal eased.
In the US, data showed that the annualised gross domestic product (GDP) climbed 2.0% on a quarterly basis in 2Q 2019, at par with market expectations. However, the preliminary figures had indicated a rise of 2.1%. The annualised GDP had recorded an increase of 3.1% in the previous quarter. Additionally, the US advance goods trade deficit narrowed to $72.3 billion in July, compared to a deficit of $74.2 billion in the previous month. On the flipside, the nation’s pending home sales unexpectedly declined 2.5% on a monthly basis in July, marking its biggest drop since early 2018. In the preceding month, the pending home sales had recorded a rise of 2.8%. Also, the number of Americans filling for fresh unemployment benefits advanced to a level of 215.0K in the week ended 24 August 2019, more market expectations for a rise to a level of 214.0 K. In the prior week, initial jobless claims had recorded a revised level of 211.0K.
In the Asian session, at GMT0300, the pair is trading at 1.1044, with the EUR trading 0.14% lower against the USD from yesterday’s close.
The pair is expected to find support at 1.1026, and a fall through could take it to the next support level of 1.1009. The pair is expected to find its first resistance at 1.1077, and a rise through could take it to the next resistance level of 1.1111.
Looking ahead, traders would await Euro-zone’s unemployment rate for July and the CPI for August along with Germany’s retail sales for July, slated to release in a few hours. Later in the day, the US Chicago Purchasing Managers’ Index and the Michigan consumer sentiment index, both for August followed by personal income and personal spending data, both for July, will keep traders on their toes.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
