EURUSD Movement
For the 24 hours to 23:00 GMT, EUR declined 0.27% against the USD and closed at 1.3497, after the European Central Bank (ECB) President, Mario Draghi, stated that the officials are willing to consider additional stimulus measures to keep short-term market interest rates in check and safeguard the region’s fragile recovery.
Separately, in the Euro-zone, data showed that the region’s manufacturing PMI declined to a reading of 51.1 in September, defying market expectation for a rise to 51.8 and following a level of 51.4 registered in the previous month. However, service PMI in the region rose to a level of 52.1 in September, surpassing analysts’ call for a rise to 51.1 and compared to a reading of 50.7 seen in the previous month.
Elsewhere in the US, the manufacturing PMI fell to a reading of 52.8 in September, failing to meet market consensus for a rise to 54.0 and following a reading of 53.1 recorded in the earlier month. Meanwhile, the Chicago Fed national activity index edged up to a level of 0.14 in the month of August, following a level of -0.43 registered in the previous month.
Traders also digested the comments delivered by Federal Reserve (Fed) policymakers yesterday, wherein the Atlanta Fed President, Dennis Lockhart and the New York Fed Chief, William Dudley, both supported the central bank’s decision last week to postpone the curbing of its bond-buying program.
In the Asian session, at GMT0300, the pair is trading at 1.3495, with the EUR trading tad lower from yesterday’s close.
The pair is expected to find support at 1.3468, and a fall through could take it to the next support level of 1.3440. The pair is expected to find its first resistance at 1.3534, and a rise through could take it to the next resistance level of 1.3572.
Investors are expected to keep a close watch on the release of German IFO business climate data, due later today, which the market expects to show an improvement in the month of September.
The currency pair is showing convergence with its 20 Hr moving average and is trading just below its 50 Hr moving average.
