EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR declined 0.35% against the USD and closed at 1.2317, after the latest set of economic releases pointed to a moderation in economic activity across the Euro-zone.
Data revealed that the Euro-zone’s flash Markit manufacturing PMI eased to a level of 56.6 in March, hitting its lowest level in 8 months. The PMI had registered a level of 58.6 in the prior month, while markets were expecting for a drop to a level of 58.1. Further, the region’s preliminary Markit services PMI fell to a 5-month low level of 55.0 in March, more than market consensus for a drop to a level of 56.0. The PMI had registered a level of 56.2 in the prior month.
Separately, activity in Germany’s manufacturing sector slowed more-than-expected to a level of 58.4 in March, touching its lowest level since July 2017. Market participants had envisaged the PMI to fall to a level of 59.8, after recording a reading of 60.6 in the previous month. Moreover, growth in the nation’s services sector dropped to a level of 54.2 in March, expanding at its weakest pace in 7 months. The PMI had registered a reading of 55.3 in the previous month, while markets were expecting it to ease to a level of 55.0.
Another set of economic data revealed that Germany’s Ifo business climate index declined to a level of 114.7 in March, less than market expectations for a fall to a level of 114.6. The index had recorded a reading of 115.4 in the prior month. Moreover, the nation’s Ifo business expectations index dipped to a level of 104.4 in March, in line with market expectations. In the prior month, the index had registered a level of 105.4.
Macroeconomic data released in the US indicated that the flash Markit manufacturing PMI rose to a level of 55.7 in March, exceeding market expectations for a rise to a level of 55.5 and notching its highest level since March 2015. The PMI had registered a level of 55.3 in the previous month. On the other hand, the nation’s flash Markit services PMI unexpectedly eased to a level of 54.1 in March, defying market expectations for an advance to a level of 56.0. In the previous month, the PMI had registered a reading of 55.9.
In other economic news, the US initial jobless claims recorded an unexpected rise to a level of 229.0K in the week ended 17 March, confounding market expectations for a fall to a level of 225.0K. Initial jobless claims had registered a level of 226.0K in the previous week. Meanwhile, the nation’s leading indicator advanced 0.6% in February, compared to a revised gain of 0.8% in the previous month, while markets had envisaged for a rise of 0.5%.
In the Asian session, at GMT0400, the pair is trading at 1.2336, with the EUR trading 0.15% higher against the USD from yesterday’s close.
The pair is expected to find support at 1.2285, and a fall through could take it to the next support level of 1.2235. The pair is expected to find its first resistance at 1.2387, and a rise through could take it to the next resistance level of 1.2439.
Amid no macroeconomic releases in the Euro-zone today, investors would focus on the US flash durable goods orders and new home sales data, both for February, set to release later in the day.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
