EUR/USD: Eurozone services PMI fell in October, investor confidence surged to the highest level since July 2007


EURUSD Movement

For the 24 hours to 23:00 GMT, the EUR marginally declined against the USD and closed at 1.1610.

On the data front, Eurozone final services PMI slid less than previously expected to 55.0 in October from 55.8 in September. The preliminary reading had recorded a fall to 54.9. Meanwhile, the region’s investor confidence index climbed to 34.0 in November, beating market expectations of a rise to a level of 31.0. In the previous month, the index had registered a reading of 29.7.

In Germany, the seasonally adjusted factory orders showed an unexpected rise of 1.0% on a monthly basis in September, against expectations for a drop of 1.1%. In the prior month, factory orders had registered a revised rise of 4.1%. However, the nation’s final services PMI was downwardly revised to 54.7 in October from a six-month high of 55.6 in September. The preliminary figures had indicated a fall to 55.2.

The US Dollar remained weak against its peers after the Federal Reserve (Fed) Bank of New York confirmed that William Dudley plans to retire earlier than expected in mid-2018, thus raising questions over leadership at the US Fed.

In the Asian session, at GMT0400, the pair is trading at 1.1611, with the EUR trading a tad higher from yesterday’s close.

The pair is expected to find support at 1.1588, and a fall through could take it to the next support level of 1.1565. The pair is expected to find its first resistance at 1.1626, and a rise through could take it to the next resistance level of 1.1641.

Moving ahead, Eurozone retail sales for September and a speech by the European Central Bank (ECB) President, Mario Draghi, due today, would be closely monitored by investors. Also, German industrial production data for September would be watched by market participants. In the US, JOLTS job openings and consumer credit figures, both for September, set to release later today would attract significant market attention.

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

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