EURUSD Movement
On Friday, EUR rose marginally against the USD and closed at 1.3307. The US Dollar came under pressure as investors refrained from taking major bets ahead of Fed’s policy decision next week.
In the Euro-zone, an official report showed that the employment change in the region declined 0.1% (QoQ) during the second quarter, less than market expectation for a 0.2% fall and compared to a 0.4% drop registered in the previous quarter. Separately, in the Eurogroup meeting on Friday, the head of Euro-zone Finance Ministers, Jeroen Dijsselbloem, stated that Portugal should stick to the budget deficit reduction targets as agreed with the international lenders.
Meanwhile, in the US, data showed that the nation’s retail sales stood at 0.2% (MoM) in August, below market expectation for a rise of 0.4% and following a 0.4% increase seen in the previous month. Additionally, the Reuters/Michigan consumer sentiment index fell to a reading of 76.8 in September, more than analysts’ estimates for a decline to 82.0 from a figure of 82.1 registered in the earlier month. Another government report revealed that the producer price index in the nation advanced 1.4% (YoY) in August, slightly more than market consensus for an increase to 1.3% and following a 2.1% rise seen in the earlier month.
In the Asian session, at GMT0300, the pair is trading at 1.3369, with the EUR trading 0.47% higher from Friday’s close.
The pair is expected to find support at 1.3287, and a fall through could take it to the next support level of 1.3205. The pair is expected to find its first resistance at 1.3417, and a rise through could take it to the next resistance level of 1.3465.
Trading trends in the Euro is expected to be determined by consumer price index data, scheduled to release later during the day, which the market expects to show an improvement in the month of August.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
