For the 24 hours to 23:00 GMT, the EUR rose 0.54% against the USD and closed at 1.2008, following better-than-expected inflation figures from Germany.
Data indicated that the flash consumer price index (CPI) in Germany advanced more-than-anticipated by 1.7% on an annual basis in December, thus offering tentative signs of sustained pick-up in inflation in the Euro-bloc’s largest economy. The CPI had climbed 1.8% in the prior month, while markets were expecting for a gain of 1.5%.
In the Asian session, at GMT0400, the pair is trading at 1.2013, with the EUR trading marginally higher against the USD from yesterday’s close.
The pair is expected to find support at 1.1998, and a fall through could take it to the next support level of 1.1982. The pair is expected to find its first resistance at 1.2026, and a rise through could take it to the next resistance level of 1.2038.
Moving ahead, market participants would look forward to the release of final Markit manufacturing PMI for December across the Euro-zone, due in a few hours. Moreover, the US final Markit manufacturing PMI for December, scheduled to be released later in the day, will be on investors’ radar.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.