EURUSD Movement
On Friday, EUR rose 0.55% against the USD and closed at 1.3285.
The greenback came under pressure, after data indicated that US hiring slowed in July, thereby leading to speculation that the Fed would be more cautious in tapering its monthly $85 billion bond buying program.
The US total nonfarm payroll employment increased by 162K jobs in July, against the expected rise by 185K, while factory orders increased 1.5% (Mom) in June, compared to a 3.0% gain in May. However, US personal spending rose as expected in June and the New York City current business activity expanded at the fastest rate in over two years in July. Also, the unemployment rate declined to 7.4% in July, from a rate of 7.6% in June.
Later on Friday, St. Louis Fed President, James Bullard opined that the Fed should exercise caution in basing its decisions on forecasts and that policymakers should wait to see more data before deciding to taper bond purchases.
Meanwhile, in the Euro-zone, the producer price index climbed 0.3% annually in June, matching the market expectations, while the number of unemployed people in Spain declined by 64.9K in July.
In the Asian session, at GMT0300, the pair is trading at 1.3275, with the EUR trading marginally lower from Friday’s close.
The pair is expected to find support at 1.3211, and a fall through could take it to the next support level of 1.3147. The pair is expected to find its first resistance at 1.3317, and a rise through could take it to the next resistance level of 1.3359.
Trading trends in the pair today are expected to be determined by the services PMI data lined up in European nations and the non-manufacturing PMI data in the US.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
