EURUSD Movement
For the 24 hours to 23:00 GMT, EUR declined 0.23% against the USD and closed at 1.2820, as weak economic data out of the Euro-zone indicated that the region was well into contraction territory last month.
In economic news yesterday, manufacturing PMI in the Euro-zone fell to a reading of 46.8 in March, while the German manufacturing PMI dropped to a reading of 49.0 in March. Also, in France, the seasonally adjusted manufacturing PMI climbed to a reading of 44.0 in March. Moreover, Euro-zone’s seasonally adjusted unemployment rate stood unchanged at 12.0% in February, in line with market estimates.
Meanwhile, the preliminary consumer price index (CPI) in Germany, advanced 1.4% (YoY) in March. Additionally, on a monthly basis, the preliminary harmonized CPI rose 0.4% in March after gaining 0.8% in February.
In the US, the current business conditions index fell to a reading of 51.2 in March, while factory orders climbed 3.0% in February.
The President of Federal Reserve (Fed) Bank of Atlanta, Dennis Lockhart, opined that although the US economy is gathering momentum, the central bank should wait and watch for several more months for further evidence that the economy is recovering and job market is improving before altering the pace of asset purchases. He also indicated that the decision to curtail its bond purchases could come later in 2013 or early in 2014.
In the Asian session, at GMT0300, the pair is trading at 1.2806, with the EUR trading 0.11% lower from yesterday’s close.
The pair is expected to find support at 1.2774, and a fall through could take it to the next support level of 1.2743. The pair is expected to find its first resistance at 1.2858, and a rise through could take it to the next resistance level of 1.2911.
The Euro-zone’s CPI data scheduled for release later today, is likely to hold market attention largely, in absence of any other major economic release in Europe. Meanwhile, in the US, the ADP employment change and the ISM non-manufacturing PMI are expected to have slight impact on the pair’s movement.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
