EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose 0.10% against the USD and closed at 1.3391, after a closely watched index of German business optimism rose more than expected in August, highlighting improving growth prospects for the struggling Euro-area. However, ongoing tension between the US and Syria limited Euro gains.
The Ifo Group reported that its current assessment on Germany edged up to a reading of 112.0 in August, more than market expectation for a rise of 110.9 and following a level of 110.1 registered in the earlier month. Similarly, its index on German business climate rose to a level of 107.5 during August, surpassing consensus of 107.0 and compared to a reading of 106.2 recorded in the previous month. Also, the expectation index advanced to a reading of 103.3 in August, more than analysts’ expectation of 103.0 and compared to a level of 102.4 seen in the prior month.
Elsewhere, in the US, a government report depicted that consumer confidence in the nation rose to a reading of 81.5 during August, defying consensus of 80.3 and following a level of 81.0 registered in the previous month. Meanwhile, the S&P/Case-Shiller Home Price Index declined 12.1% (YoY) in June, less than market expectation for a decline of 12.0% from 12.2% recorded in the earlier month.
In the Asian session, at GMT0300, the pair is trading at 1.3385, with the EUR trading slightly lower from yesterday’s close, as the developing situation over Syria negatively hit investors’ moods.
The pair is expected to find support at 1.3338, and a fall through could take it to the next support level of 1.3291. The pair is expected to find its first resistance at 1.3416, and a rise through could take it to the next resistance level of 1.3447.
Investors await the release of GfK consumer confidence data from Germany, which might show up-stick during September. Investors are also expected to keep a close eye on the release of Euro-zone M3 money supply and private loans data, slated later today.
The currency pair is trading just above its 20 Hr and 50 Hr moving averages.
