EUR/USD: Euro-zone’s producer prices accelerated to a 12-month high level in May


EURUSD Movement

For the 24 hours to 23:00 GMT, the EUR rose 0.16% against the USD and closed at 1.1659.

On the data front, Euro-zone’s producer price index (PPI) climbed to 3.0% on annual basis in May, marking a 12-month high level and compared to a revised rise of 1.9% in the previous month. Market participants had expected the PPI to rise 2.7%. Meanwhile, the region’s seasonally adjusted retail sales rose 1.4% on a yearly basis in May, undershooting market consensus for an advance of 1.6%. In the prior month, retail sales had recorded a revised rise of 1.6%.

The US Dollar fell against the EUR yesterday, ahead of the US Federal Reserve’s June meeting minutes and jobs data.

In the US, data revealed that final durable goods orders slid 0.4% on a monthly basis in May, while markets had expected for a drop of 0.5%. The preliminary figures had indicated a decline of 0.6%. In the prior month, durable goods orders had fallen by a revised 1.0%.

On the other hand, the nation’s factory orders rebounded by 0.4% on a monthly basis in May, compared to a revised fall of 0.4% in the previous month. Markets had envisaged factory orders to record a flat reading.

In the Asian session, at GMT0300, the pair is trading at 1.1669, with the EUR trading 0.09% higher against the USD from yesterday’s close.

The pair is expected to find support at 1.1637, and a fall through could take it to the next support level of 1.1605. The pair is expected to find its first resistance at 1.1690, and a rise through could take it to the next resistance level of 1.1711.

Moving ahead, investor sentiment will be determined by the Markit services PMI for June, scheduled to be released, across the Euro-zone, in a while.

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

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