EUR/USD: German business morale unexpectedly deteriorates in January


EURUSD Movement

For the 24 hours to 23:00 GMT, the EUR declined 0.07% against the USD and closed at 1.1020 yesterday, after German business climate index unexpectedly dropped to a level of 95.90 in January, compared with the reading of 96.30 in the previous month. However, the nation’s current situation index improved to a level of 99.10, from a reading of 98.80 in the previous month. Separately, the European Central Bank (ECB) board member, Yves Mersch, stated that the central bank’s ultra-easy monetary policy might be fuelling asset bubbles, which may trigger future crises.

In the Asian session, at GMT0400, the pair is trading at 1.1022, with the EUR trading 0.02% higher against the USD from yesterday’s close.

The pair is expected to find support at 1.1009, and a fall through could take it to the next support level of 1.0995. The pair is expected to find its first resistance at 1.1037, and a rise through could take it to the next resistance level of 1.1051.

Trading trends in the pair today are expected to be determined by global macro-economic events.

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

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