EUR/USD: Euro-zone’s economy expanded as anticipated in 2Q 2018


EURUSD Movement

For the 24 hours to 23:00 GMT, the EUR declined 0.56% against the USD and closed at 1.1560 on Friday.

Data showed that, Euro-zone’s seasonally adjusted final gross domestic product (GDP) jumped 0.4% on a quarterly basis in 2Q 2018, in line with market expectations and confirming preliminary print. In the previous quarter, the GDP had registered a revised gain of 0.3%.

In Germany, seasonally adjusted trade surplus narrowed €16.5 billion in July, compared to a surplus of €21.8 billion in the previous month, while market participants had anticipated the nation to record a surplus of €19.5 billion. Moreover, the nation’s seasonally adjusted industrial production unexpectedly slid to a 5-month low level of 1.1% on monthly basis in July, defying market consensus for an advance of 0.2%. In the previous month, industrial production had fallen by a revised 0.7%.

In the US, data indicated that the US non-farm payrolls advanced to a level of 201.0K in August, following a revised gain of 147.0K in the prior month. Market participants had envisaged non-farm payrolls to rise to a level of 190.0K. Meanwhile, the nation’s unemployment rate remained unchanged at 3.9%. Further, average hourly earnings climbed 2.9% on an annual basis in August, higher than market expectations for a rise of 2.7%. In the prior month, average hourly earnings had advanced 2.7%.

In the Asian session, at GMT0300, the pair is trading at 1.1549, with the EUR trading 0.10% lower against the USD from Friday’s close.

The pair is expected to find support at 1.1514, and a fall through could take it to the next support level of 1.1480. The pair is expected to find its first resistance at 1.1616, and a rise through could take it to the next resistance level of 1.1684.

Moving ahead, investor’s will await Euro-zone’s Sentix investor confidence for September, due to be released in a few hours. Also, the US consumer credit data for July, set to release later today, will keep traders on their toes.

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

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