For the 24 hours to 23:00 GMT, the EUR slightly rose against the USD and closed at 1.2380, following a pair of upbeat economic releases in Germany.
Data revealed that Germany’s seasonally adjusted factory orders rebounded more-than-anticipated by 3.8% MoM in December, rising by the most in 4 months, thus boosting optimism over the health of the nation’s industrial sector. Factory orders had recorded a revised drop of 0.1% in the prior month, while markets were expecting for an advance of 0.7%. Additionally, the nation’s construction sector expanded at its fastest pace in nearly 7 years in January, after the Markit construction PMI climbed to a level of 59.8, compared to a reading of 53.7 in the preceding month.
Macroeconomic data showed that trade deficit in the US widened to a 9-year high level of $53.1 billion in December, as growth in imports outpaced that of exports. Market participants had expected the nation’s trade deficit to widen to $52.1 billion, after recording a revised deficit of $50.4 billion in the prior month. Additionally, the nation’s JOLTS job openings dropped more-than-expected to a level of 5811.0K in December, compared to a revised reading of 5978.0K in the prior month, while investors had anticipated for a fall to a level of 5961.0K.
In the Asian session, at GMT0400, the pair is trading at 1.2384, with the EUR trading slightly higher against the USD from yesterday’s close.
The pair is expected to find support at 1.2321, and a fall through could take it to the next support level of 1.2257. The pair is expected to find its first resistance at 1.2441, and a rise through could take it to the next resistance level of 1.2497.
Moving ahead, investors would look forward to Germany’s industrial production data for December as well as the European Commission’s economic growth forecast report, both scheduled to release in a few hours. Moreover, the US MBA mortgage applications followed by consumer credit data for December, set to release later in the day, will be on investors’ radar.
The currency pair is trading between its 20 Hr and 50 Hr moving averages.