EUR/USD: Euro-zone’s industrial production declined less than expectations in February


EURUSD Movement

For the 24 hours to 23:00 GMT, the EUR rose 0.32% against the USD and closed at 1.1295 on Friday, amid speculation that news of a Japanese bank’s plans to purchase a German multi-billion-dollar aviation finance business might boost demand for the currency.

Data indicated that the Euro-zone’s seasonally adjusted industrial production dropped 0.2% on a monthly basis in February, amid drop in energy production and less than market expectations for a fall of 0.6%. In the previous month, industrial production had recorded a revised gain of 1.9%.

In the US, data showed that the US flash Reuters/Michigan consumer sentiment index declined to a level of 96.9 in April, compared to a reading of 98.4 in the prior month. Market participants had envisaged the index to drop to a level of 98.2.

In the Asian session, at GMT0300, the pair is trading at 1.1313, with the EUR trading 0.16% higher against the USD from Friday’s close.

The pair is expected to find support at 1.1289, and a fall through could take it to the next support level of 1.1264. The pair is expected to find its first resistance at 1.1331, and a rise through could take it to the next resistance level of 1.1348.

Amid lack of macroeconomic releases in the Euro-zone today, investors will keep an eye on the US Empire State manufacturing index for April, slated to release later in the day.

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

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

Comments are closed.