EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose 0.46% against the USD and closed at 1.3368, as investor sentiment improved following upbeat US employment data and positive German and Euro-zone manufacturing data.
On the US economic front, for the week ended 19 January 2013, initial jobless claims declined to 330,000, the lowest level since January 2008 and compared to the previous week’s unrevised figure of 335,000. Also the preliminary manufacturing PMI rose to a reading of 56.1 in January, compared to a reading of 54.0 recorded in the previous month. Moreover, the Federal Reserve Bank of Kansas reported that, its manufacturing index fell to a reading of -2.0 in January, compared to an upwardly revised reading of -1.0 recorded in the previous month.
In the Euro-zone, the services Purchasing Managers’ Index (PMI) edged up to a reading of 48.3 in January, following a reading of 47.8 in December. Similarly, the manufacturing PMI advanced to a reading of 47.5 in January, from a reading of 46.1. Meanwhile, the composite output index rose to a reading of 48.2 in January, from a reading of 47.2 in December. On a seasonally adjusted basis, current account surplus in the Euro-zone widened to €14.8 billion in November, from a €8.0 billion surplus in October. In Germany, the services Purchasing Managers’ Index (PMI) climbed to a reading of 55.3 in January, from a reading of 52.0 in December. Meanwhile, the manufacturing PMI rose to a reading of 48.8 in January, against the expectations for a reading of 46.8 and from a reading of 46.0 recorded in the previous month.
However, on a seasonally adjusted basis, the French manufacturing purchasing managers’ index (PMI) retreated to a four-month low of 42.9 in January, while service PMI retreated to a 46-month low of 43.6 in January, against the expectations for a reading of 45.5 and compared to a reading of 45.2 in December.
In the Asian session, at GMT0400, the pair is trading at 1.3362, with the EUR trading marginally lower from yesterday’s close.
The pair is expected to find support at 1.3301, and a fall through could take it to the next support level of 1.3239. The pair is expected to find its first resistance at 1.3409, and a rise through could take it to the next resistance level of 1.3455.
Investors eye Germany’s IFO – business climate, current assessment and expectations slated for release today. In the US new home sales data is awaited.
The currency pair is showing convergence with its 20 Hr moving average and is trading above its 50 Hr moving average.
