EURUSD Movement
On Friday, EUR declined 0.22% against the USD and closed at 1.3209, as upbeat US consumer sentiment data and lingering tension of a possible military attack over Syria, boosted the demand for the safe-haven dollar. Separately, an official report showed that the retail sales in Germany declined 1.4% (MoM) in July, defying market expectation for a rise to 0.5% and compared to a 0.8% fall registered in the previous month.
In the US, data showed that Reuters/Michigan consumer sentiment index surged to a level of 82.1 in August, surpassing market estimates of 80.5 and compared to a reading of 85.1 registered in the previous month. However, personal income in the US edged down 0.1% (MoM) in July, lower than the consensus of 0.2% and following a 0.3% rise registered in the earlier month. Additionally, the US personal spending also inched lower 0.1% during July, lower than market expectation of 0.3% and compared to a 0.6% increase recorded in the prior month.
Meanwhile, in the Euro-zone, official data revealed that consumer confidence in the region rose to a level of -16.0 during August, more than the analysts’ estimate of -16.5 and compared to a reading of -17.4 seen in the previous month. Also, Euro-zone’s economic sentiment indicator surged to a reading of 95.2 in August, surpassing market consensus of a rise to 93.0 from a level of 92.5 registered in the previous month. Another official report depicted that Euro-zone’s consumer price index eased 1.3% (YoY) in August, more than analysts’ expectation of 1.4% and compared to a 1.6% rise registered in the earlier month. Additionally, a government report confirmed that unemployment in the region remained flat 12.1% during August.
In the Asian session, at GMT0300, the pair is trading at 1.3207, with the EUR trading marginally lower from Friday’s close.
The pair is expected to find support at 1.3169, and a fall through could take it to the next support level of 1.3130. The pair is expected to find its first resistance at 1.3250, and a rise through could take it to the next resistance level of 1.3292.
Inventors await the release of Markit manufacturing PMI data for Euro-zone, Germany and France ahead today. Also during the week ahead, the European Central Bank (ECB) would once again step into the market spotlight, deciding its policy stance.
The currency pair is showing convergence with its 20 Hr moving average and is trading just below its 50 Hr moving average.
