EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose 0.30% against the USD and closed at 1.3488, after a report showed that the German consumer sentiments for February improved more than the market expected. The consumer confidence index for February rose to 5.8 from 5.7 in January. Market participants had expected the index to remain unchanged at the January level.
Meanwhile, data released by the Federal Statistical Office showed that Germany’s import price inflation eased for the fourth straight month in December.
In France, the consumer confidence index stood stable at 86.0 in January, in line with market expectations. On an annual basis, retail sales in Spain declined 10.7% in December, following a 7.8% drop recorded in the previous month.
Separately, the European Commissioner for Economic and Monetary Affairs, Olli Rehn indicated that, the European Union (EU) might consider easing Spain’s budget targets, if there is a notable deterioration in economic activity.
The US Dollar came under pressure, after the Conference Board released a report showing a substantial deterioration in US consumer confidence in the month of January.
In the Asian session, at GMT0400, the pair is trading at 1.3489, with the EUR trading marginally higher from yesterday’s close.
The pair is expected to find support at 1.3436, and a fall through could take it to the next support level of 1.3383. The pair is expected to find its first resistance at 1.3520, and a rise through could take it to the next resistance level of 1.3551.
Amidst a string of economic releases, Euro-zone’s industrial confidence, services sentiment and consumer confidence would remain in focus today. Meanwhile in the US, investors await the gross domestic product and the ADP employment change data. However, investors keenly look forward to Fed’s interest rate decision and its monetary policy statement.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
