EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose 0.65% against the USD and closed at 1.3351, as uncertainty over the Federal Reserve’s decision of reducing its stimulus measures prevailed following a mixed bag of US economic data.
Amidst a string of US economic data released yesterday, initial jobless claims dropped by 15K to a seasonally adjusted 320K in the week ended 10 August 2013, while the consumer price index registered its third consecutive monthly gain of 0.2% (MoM) in July. Meanwhile, the Empire State manufacturing index fell to a reading of 8.24 in August, while the industrial production remained flat in July, against expected rise of 0.3%. Also, the NAHB/Wells Fargo housing market index advanced to a reading of 59.0 in August.
In a notable comment, the President of the Federal Reserve Bank of St. Louis, James Bullard floated the idea that the central bank could hedge its bets by making smaller cuts in bond buying rather than large, aggressive ones when it starts pulling back on its $85 billion-a-month bond-buying program.
Trading in the Euro-zone remained subdued with several European nations following Assumption day holiday.
In the Asian session, at GMT0300, the pair is trading at 1.3347, with the EUR trading marginally lower from yesterday’s close.
The pair is expected to find support at 1.3247, and a fall through could take it to the next support level of 1.3146. The pair is expected to find its first resistance at 1.3406, and a rise through could take it to the next resistance level of 1.3464.
Later in the day, consumer price index and trade balance data are scheduled for release in the Euro-zone. Investors shall also track the US consumer sentiment data in order to gauge the movement of the US dollar.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
