For the 24 hours to 23:00 GMT, the EUR rose 0.27% against the USD and closed at 1.2404, after data showed that the common currency region posted another quarter of strong growth.
The Euro-zone’s seasonally adjusted flash gross domestic product (GDP) rose 0.6% on a quarterly basis in the three months to 2017, meeting market expectations. In the prior quarter, GDP had registered a revised rise of 0.7%.
Other economic data revealed that the final consumer confidence index climbed to a level of 1.3 in January, confirming the preliminary print. In the previous month, the index had recorded a reading of 0.5. Moreover, the region’s economic confidence posted an unexpected drop to a level of 114.7 in January, after recording a 17-year high level of 115.3 in the prior month. Market participants had expected for a rise to a level of 116.2.
Separately, Germany’s preliminary consumer price index (CPI) advanced less-than-anticipated by 1.6% YoY in January, justifying the European Central Bank’s (ECB) cautious approach as price growth remains weak despite strong growth in the Eurozone’s largest economy. The CPI had climbed 1.7% in the prior month, while market participants had anticipated for a gain of 1.7%.
In the US, data revealed that the CB consumer confidence index registered an unexpected rise to a level of 125.4 in January, defying market estimates for a fall to a level of 123.0. The index had recorded a revised level of 123.1 in the prior month.
In the Asian session, at GMT0400, the pair is trading at 1.2421, with the EUR trading 0.14% higher against the USD from yesterday’s close.
The pair is expected to find support at 1.2353, and a fall through could take it to the next support level of 1.2284. The pair is expected to find its first resistance at 1.2472, and a rise through could take it to the next resistance level of 1.2522.
Moving ahead, investors would be paying close attention to the Euro-zone’s flash inflation figures for January and unemployment rate for December as well as Germany’s unemployment rate for January and retail sales for December, all slated to release in a few hours. Later in the day, the Federal Reserve is scheduled to announce its monetary policy decision. Investors would focus on the central bank’s policy statement for fresh hints on the outlook for interest rates this year.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.