EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose marginally against the USD and closed at 1.3075, after German factory orders beat market expectations by rising a seasonally adjusted 2.2% (MoM) in March, from a similar revised rate of growth recorded in the previous month. Market had expected a drop of 0.5%.
However, gains were capped as French economic data disappointed markets, after industrial output in the country declined more-than-expected by 0.9% (MoM) in March, compared to a revised 0.8% increase recorded in the previous month. Market had expected a 0.3% drop. Also, French budget deficit increased to €31.026 billion in March, from €27.100 billion deficit recorded in February.
Meanwhile, what came as a bullish tone for the riskier assets was the US Treasury Secretary Jacob Lew’s comments, who stated that the US economy might grow 3% or more in the early next year, faster than the current pace of 2% to 2.5%.
In the Asian session, at GMT0300, the pair is trading at 1.3091, with the EUR trading 0.12% higher from yesterday’s close, as strong Chinese trade data added to positive risk sentiment already bolstered by strong overnight performance by the US and European equities.
The pair is expected to find support at 1.3061, and a fall through could take it to the next support level of 1.3031. The pair is expected to find its first resistance at 1.3127, and a rise through could take it to the next resistance level of 1.3163.
Industrial production data from Germany lists in today’s list of economic announcements from Europe.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
