EUR/USD: Euro-zone’s unemployment rate surprisingly remained steady in August


EURUSD Movement

For the 24 hours to 23:00 GMT, the EUR declined 0.31% against the USD and closed at 1.1738.

Meanwhile, data indicated that the Euro-zone’s unemployment rate unexpectedly remained steady at an eight-year low of 9.1% in August, while markets had anticipated for a drop to 9.0%.

Moreover, the region’s final Markit manufacturing PMI was revised lower to a level of 58.1 in September, compared to a preliminary print indicating an advance to a level of 58.2. However, the PMI remained at a nearly seven-year high level. In the previous month, the PMI had registered a reading of 57.4.

Separately, Germany’s manufacturing sector expanded to a level of 60.6 in September, confirming the flash estimate. In the previous month, the PMI had registered a level of 59.3.

The greenback gained ground against a basket of major currencies, following a pair of upbeat US economic reports.

The US ISM manufacturing activity index surprised with an unexpected rise to a level of 60.8 in September, accelerating at its fastest pace in more than thirteen years, amid a sharp rise in new orders and raw material prices. Markets had expected the index to fall to a level of 58.1, after recording a reading of 58.8 in the prior month. Further, the nation’s construction spending rebounded more-than-anticipated by 0.5% on a monthly basis in August, following a revised drop of 1.2% in the prior month. Markets had expected construction spending to climb 0.4%.

In other economic news, final print of Markit manufacturing PMI was revised higher to a level of 53.1 in September from a preliminary print indicating a rise to a level of 53.0. The PMI had registered a level of 52.8 in the previous month.

In the Asian session, at GMT0300, the pair is trading at 1.1713, with the EUR trading 0.21% lower against the USD from yesterday’s close.

The pair is expected to find support at 1.1683, and a fall through could take it to the next support level of 1.1654. The pair is expected to find its first resistance at 1.1761, and a rise through could take it to the next resistance level of 1.1810.

Going forward, market participants will closely monitor the Euro-zone’s producer price index for August, slated to release in a few hours.

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

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