EUR/USD: Euro-zone’s PPI advanced at its slowest pace in five months in May


EURUSD Movement

For the 24 hours to 23:00 GMT, the EUR declined 0.13% against the USD and closed at 1.1353.

Macroeconomic data showed that the Euro-zone’s producer price index (PPI) rose less-than-expected by 3.3% on a yearly basis in May, rising at its weakest pace in five months. The PPI had recorded a gain of 4.3% in the prior month, while markets had anticipated a rise of 3.5%.

In the Asian session, at GMT0300, the pair is trading at 1.136, with the EUR trading 0.06% higher against the USD from yesterday’s close.

The pair is expected to find support at 1.1339, and a fall through could take it to the next support level of 1.1319. The pair is expected to find its first resistance at 1.1377, and a rise through could take it to the next resistance level of 1.1395.

Looking ahead, investors will closely monitor the final Markit services PMI for June across the Euro-zone coupled with the region’s retail sales data for May, both slated to release in a few hours. Moreover, market participants will direct their attention towards the FOMC June meeting minutes, due to release later today, to get clues on the timing of the next interest rate hike and Fed’s plans to trim the balance sheet. Also, the US factory orders and final durable goods orders, both for May will be eyed by traders.

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

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