EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR rose marginally against the USD and closed at 1.3876, ahead of a busy week.
In the Euro-zone, the European Commission maintained its 2014 growth-projection for the economy at 1.2% but lowered its growth estimates for 2015 by 0.1% to 1.7%. Furthermore, the Commission also slashed its forecast on the Euro-zone’s inflation rate to 0.8% and 1.2% for 2014 and 2015, respectively, down from its earlier expectations of 1.0% and 1.3%. However, the EU Commission Vice-President, Siim Kallas expressed an optimistic outlook on the growth of the Euro-zone economy. Additionally, he indicated that the labour market was showing signs of stabilisation despite the high unemployment and, as a result, some improvement can be expected in the next two years.
On the economic front, the Euro-zone Sentix investor confidence deteriorated to a three-month low reading of 12.8 in May, from previous month’s level of 14.1 while producer price index fell 1.6% (YoY) in March, less compared to a 1.7% (YoY) drop in the preceding month.
Meanwhile, in the US, the ISM non-manufacturing PMI rose to a reading of 55.2 in April, its highest reading in six months while the Markit service PMI fell less-than-expected to a level of 55.0 last month.
In the Asian session, at GMT0300, the pair is trading at 1.3879, with the EUR trading tad higher from yesterday’s close.
The pair is expected to find support at 1.3869, and a fall through could take it to the next support level of 1.3859. The pair is expected to find its first resistance at 1.3888, and a rise through could take it to the next resistance level of 1.3897.
During the later course of the day, traders would eye the Euro-zone’s Markit service, composite PMI and retail sales data, for further cues in the Euro.
The currency pair is showing convergence with its 20 Hr moving average and is trading just above its 50 Hr moving average.
