EUR/USD: Euro-zone’s consumer confidence index rose as estimated in March


EURUSD Movement

For the 24 hours to 23:00 GMT, the EUR declined 0.20% against the USD and closed at 1.1228.

On the macro front, the Euro-zone’s business climate indicator fell to a level of 0.53 in March, more than market expectations for a drop to a level of 0.53. The business climate indicator had recorded a reading of 0.69 in the previous month. Moreover, the nation’s economic sentiment indicator slid to a level of 105.5 in March, marking its lowest level since 2016 and compared to a revised reading of 106.2 in the previous month. Market participants had envisaged the indicator to fall to a level of 105.9. On the other hand, the region’s final consumer confidence index advanced to a level of -7.2 March, in line with market expectations and confirming the preliminary figures. In the prior month, the index had registered a reading of -7.4.

Separately, in Germany, the flash consumer price index (CPI) climbed 1.3% on an annual basis in March, less than market expectations for an advance of 1.5%. The CPI had advanced 1.5% in the prior month.

In the US, data indicated that the US final annualised gross domestic product rose 2.2% on a quarterly basis in 4Q 2018, undershooting market expectations for an advance of 2.3%. The preliminary figures had recorded an advance of 2.6%, while the GDP had registered a rise of 3.4% in the previous quarter. Additionally, the seasonally adjusted initial jobless claims unexpectedly fell to a level of 211.0K in the week ended 23 March 2019, defying market expectations for a gain to a level of 220.0K. In the previous week, initial jobless claims had recorded a revised reading of 216.0K. Meanwhile, the nation’s pending home sales dropped 5.0% on a yearly basis in February, more than market forecast. In the previous month, pending home sales had registered a revised decline of 3.3%.

In the Asian session, at GMT0400, the pair is trading at 1.1228, with the EUR trading flat against the USD from yesterday’s close.

The pair is expected to find support at 1.1208, and a fall through could take it to the next support level of 1.1187. The pair is expected to find its first resistance at 1.1255, and a rise through could take it to the next resistance level of 1.1281.

Going forward, traders would closely monitor Germany’s retail sales for February and unemployment rate for March, slated to release in a few hours. Later in the day, the US personal income and personal spending for January along with new home sales for February, will keep investors on their toes. Additionally, the Chicago purchasing managers’ index and the Michigan consumer sentiment index, both for March, will be on investors’ radar.

The currency pair is showing convergence with its 20 Hr moving average and trading below its 50 Hr moving average.

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