EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR rose 0.17% against the USD and closed at 1.1226 on Friday, after the preliminary manufacturing PMI data indicated that activity in the Euro-zone’s manufacturing sector expanded at the fastest pace in three months. On the contrary, the region’s services PMI unexpectedly eased to a level of 52.1 in September, expanding at the slowest pace since December 2014, while markets expected the index to remain steady at a level of 52.8.
Elsewhere in Germany, the flash Markit manufacturing PMI accelerated to a three-month high level, after it unexpectedly rose to a level of 54.3 in September, compared to market expectations for a fall to a level of 53.1 and after recording a level of 53.6 in the previous month. On the other hand, the nation’s flash services PMI expanded at the slowest pace in more than three years, after it registered an unexpected drop to a level of 50.6 in September. The PMI had registered a level of 51.7 in the prior month whereas markets had envisaged for it to advance to a level of 52.1.
Macroeconomic data released in the US indicated that, the flash Markit manufacturing PMI unexpectedly declined to a three-month low level of 51.4 in September, but remained in the expansion territory. Meanwhile, markets expected the index to remain steady at a level of 52.0, recorded in the prior month.
In the Asian session, at GMT0300, the pair is trading at 1.1229, with the EUR trading marginally higher against the USD from Friday’s close.
The pair is expected to find support at 1.1200, and a fall through could take it to the next support level of 1.1170. The pair is expected to find its first resistance at 1.1250, and a rise through could take it to the next resistance level of 1.1270.
Moving ahead, investors would concentrate on Germany’s IFO business climate and expectations index data, due in a few hours. Additionally, the US new home sales and Dallas Fed manufacturing activity index data, slated to release later in the day, would be closely watched by investors.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
