EURUSD Movement
For the 24 hours to 23:00 GMT, EUR gained 0.11% against the USD and closed at 1.3356, drawing support from the latest batch of upbeat PMI data from the Euro-zone and Germany.
In the Euro-zone, Markit manufacturing PMI rose to a reading of 51.3 in August, above markets’ expectation for a rise of 50.8 and compared to a level 50.3 registered in the previous month. Similarly, Euro-zone Markit service PMI advanced to a level of 51.0 during August, compared to market expectation for a rise of 50.2 and a previous month’s reading of 49.8. Meanwhile, German manufacturing and service PMI also came in above market expectation at a reading of 52.0 and 52.4, respectively during August.
Separately in the US, a government report showed that initial jobless claim rose to a level of 336,000 during the week ended 16 August 2013, defying market expectation for a decline of 322,000 from previous week’s reading of 323,000. Meanwhile, Markit manufacturing PMI in the US edged up to a reading of 53.9 in August, surpassing market expectation for a rise of 53.8. Also, an official data highlighted that US housing price index inched lower 0.7% (MoM) in July, from 0.8% registered in the previous month.
In the Asian session, at GMT0300, the pair is trading at 1.3349, with the EUR trading slightly lower from yesterday’s close.
The pair is expected to find support at 1.3306, and a fall through could take it to the next support level of 1.3263. The pair is expected to find its first resistance at 1.3383, and a rise through could take it to the next resistance level of 1.3417.
Investors await the release of German GDP data, which is expected to register growth in the second quarter. Investors are also expected to keep a close watch over European Commission’s report on Euro-zone’s consumer confidence, slated later today.
The currency pair is showing convergence with its 20 Hr moving average and is trading just below its 50 Hr moving average.
