EUR/USD: Germany’s consumer price inflation slowed sharply in December


EURUSD Movement

For the 24 hours to 23:00 GMT, the EUR declined 0.12% against the USD and closed at 1.1446 on Friday.

Data indicated that Germany’s flash consumer price inflation (CPI) slowed more than expected to 1.7% on a yearly basis in December, hitting to its lowest level in 8-months. The CPI had recorded a gain of 2.3% in the prior month.

In the US data showed that the US Chicago Fed purchasing managers’ index eased to a level of 65.4 in December, amid worries over tariff uncertainties and compared to market consensus for a drop to a level of 60.2. In the previous month, the index had registered a level of 66.4. Moreover, the nation’s pending home sales unexpectedly declined 0.7% on a monthly basis in November, defying market consensus for an advance of 1.0%. In the preceding month, pending home sales had recorded a fall of 2.6%.

In the Asian session, at GMT0400, the pair is trading at 1.1436, with the EUR trading 0.09% lower against the USD from Friday’s close.

The pair is expected to find support at 1.1420, and a fall through could take it to the next support level of 1.1403. The pair is expected to find its first resistance at 1.1463, and a rise through could take it to the next resistance level of 1.1489.

In absence of key macroeconomic releases in the Euro-zone today, investors would closely monitor the US Dallas Fed manufacturing activity for December, slated to release later in the day.

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

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