EUR/USD: Euro-zone’s current account surplus narrowed to a 3-year low level in April


EURUSD Movement

For the 24 hours to 23:00 GMT, the EUR declined 0.22% against the USD and closed at 1.1184 on Friday.

On the macro front, Euro-zone’s current account unexpectedly surplus narrowed to €14.4 billion in April, recording its lowest level since 2017 and defying market forecast for a surplus of €31.5 billion. In the previous month, current account surplus stood at €27.4 billion. Separately, Germany’s producer price index fell 2.2% on a yearly basis in May, recording its biggest fall since 2016 and more than market consensus for a drop of 2.1%. In the prior month, the index had recorded a decline of 19%.

In the US, current account deficit narrowed to $104.2 billion in the first quarter of 2020, less than market forecast for a deficit of $103.0 billion and compared to a revised deficit of $104.3 billion in the previous quarter.

In the Asian session, at GMT0300, the pair is trading at 1.1189, with the EUR trading slightly higher against the USD from Friday’s close.

The pair is expected to find support at 1.1153, and a fall through could take it to the next support level of 1.1118. The pair is expected to find its first resistance at 1.1239, and a rise through could take it to the next resistance level of 1.1290.

Going forward, traders would keep a watch on Euro-zone’s consumer confidence for June, slated to release later today. Later in the day, the Chicago Fed National Activity Index and US existing home sales, both for May, would keep investors on their toes.

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

This entry was posted in EUR/USD. Bookmark the permalink.

Comments are closed.