EUR/USD: Euro-zone’s industrial production climbed more-than-estimated in August


EURUSD Movement

For the 24 hours to 23:00 GMT, the EUR declined 0.30% against the USD and closed at 1.1557

on Friday.

On the data front, the Euro-zone’s seasonally adjusted industrial production rebounded 1.0% on a monthly basis in August, compared to a revised fall of 0.7% in the prior month. Market participants had envisaged the industrial production to record a gain of 0.5%. Moreover, Germany’s final consumer price index (CPI) advanced to its highest level in 7-years by 2.3% in September, at par with market expectations and confirming the preliminary print. In the previous month, the CPI had increased 2.0%.

In the US, data showed that the US flash Reuters/Michigan consumer sentiment index unexpectedly eased to a level of 99.0 in October, defying market consensus for a rise to a level of 100.5. The index had registered a level of 100.1 in the preceding month.

In the Asian session, at GMT0300, the pair is trading at 1.1549, with the EUR trading 0.07% lower against the USD from friday’s close.

The European Central Bank President, Mario Draghi, warned that the Italian budget deficit has already dented the economy, thus officials should stop doubting the euro and need to “calm down”.

The pair is expected to find support at 1.1519, and a fall through could take it to the next support level of 1.1490. The pair is expected to find its first resistance at 1.1594, and a rise through could take it to the next resistance level of 1.1640.

Amid lack of economic releases in the Euro-zone today, traders would focus on the US Empire manufacturing for October, advance retail sales for September and business inventories for August, all set to release later in the day.

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

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