EUR/USD: Euro-zone’s industrial production rebounded in October


EURUSD Movement

For the 24 hours to 23:00 GMT, the EUR rose 0.49% against the USD and closed at 1.1376.

Macroeconomic data revealed that the Euro-zone’s seasonally adjusted industrial production rebounded 0.2% on a monthly basis in October, in line with market expectations. In the previous month, industrial production had registered a revised drop of 0.6%.

The US dollar declined against its major peers yesterday, after the US inflation data indicated that the Federal Reserve will slow its pace of rate hikes in 2019.

In the US, data showed that the US consumer price index (CPI) rose 2.2% on an annual basis in November, meeting market expectations. In the previous month, the CPI had recorded a rise of 2.5%. Moreover, the nation’s mortgage applications climbed 1.6% on a weekly basis in the week ended 07 December 2018, following an advance of 2.0% in the previous week.

In the Asian session, at GMT0400, the pair is trading at 1.1368, with the EUR trading 0.07% lower against the USD from yesterday’s close.

The pair is expected to find support at 1.1326, and a fall through could take it to the next support level of 1.1285. The pair is expected to find its first resistance at 1.1398, and a rise through could take it to the next resistance level of 1.1429.

Going forward, traders would await the European Central Bank’s interest rate decision along with Germany’s consumer price index for November, slated to release in a few hours. Later in the day, the US initial jobless claims will keep investors on their toes.

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

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