For the 24 hours to 23:00 GMT, the EUR rose 0.74% against the USD and closed at 1.1828, after the Euro-zone’s jobs report painted a bright picture of the region’s labour market.
Data showed that unemployment rate in the Euro-zone surprisingly declined to an eight-year low of 9.1% in June, suggesting that the region’s economy continued to gain traction. Unemployment rate had recorded a revised level of 9.2% in the previous month, while markets were expecting it to remain steady. Further, the region’s preliminary consumer price index (CPI) advanced 1.3% on an annual basis in July, meeting market expectations and compared to a similar rise in the prior month.
Separately, Germany’s retail sales grew more-than-expected by 1.1% on a monthly basis in June, rising by the most since October 2016 and indicating that the nation’s consumers remain a key pillar for driving growth in the Euro-zone’s biggest economy. Retail sales had registered a gain of 0.5% in the prior month, while market participants had envisaged for a rise of 0.2%.
The US Dollar declined against a basket of major currencies, amid chaos in the White House following news that the White House communications director, Anthony Scaramucci, was ousted.
Macroeconomic data showed that pending home sales in the US rebounded more-than-expected by 1.5% on a monthly basis in June, advancing for the first time in 4 months. Investors had anticipated pending home sales to increase 1.0%, after reporting a revised drop of 0.7% in the prior month. Further, the nation’s Dallas Fed manufacturing business index unexpectedly climbed to a level of 16.8 in July, following a level of 15.0 in the prior month.
On the contrary, the nation’s Chicago Fed purchasing managers index dropped to a level of 58.9 in July, surpassing market consensus for a drop to a level of 60.0 and after recording a three-year high level of 65.7 in the previous month.
In the Asian session, at GMT0300, the pair is trading at 1.1826, with the EUR trading marginally lower against the USD from yesterday’s close.
The pair is expected to find support at 1.1751, and a fall through could take it to the next support level of 1.1675. The pair is expected to find its first resistance at 1.1874, and a rise through could take it to the next resistance level of 1.1921.
Ahead in the day, investors will anxiously await the Euro-zone’s flash 2Q GDP figures and Germany’s unemployment rate for July. Further, the release of final Markit manufacturing and services PMIs data across the Euro-bloc, scheduled in a few hours, will grab a lot of market attention. Additionally, traders will direct their attention to a slew of economic releases in the US, consisting of the ISM manufacturing as well as the final Markit manufacturing PMIs, both for July along with the nation’s construction spending, personal income and spending data, all for June, slated to release later in the day.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.