EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR rose 0.49% against the USD and closed at 1.2553.
In economic news, the European Commission (EC) in its economic forecast downgraded the Euro-zone’s economic growth projections to 0.8% and 1.1% for 2014 and 2015 respectively, lower than its earlier forecast of a growth of 1.2% and 1.7% for same periods, citing slowdown in global economy. It also lowered its inflation forecasts for the Eurozone to 0.8% and 1.5% for 2015 and 2016, respectively.
In other economic news, the Euro-zone’s producer price index increased 0.2% on a monthly basis in September, compared to a drop of 0.2% registered in the prior month, while markets were expecting for the index to record an unchanged reading.
Elsewhere, in Spain, number of unemployed people climbed by 79.2 K in October, following a gain of 19.7 K jobs in September.
Separately, the ECB’s policymaker, Benoit Coeure urged the respective Euro-governments to adopt quick reforms in fiscal and structural policies in order to support the fragile economic recovery in the single-currency region.
The greenback lost ground after factory orders in the US eased 0.6%, registering a second consecutive month fall in September, at par with market expectations, following a drop of 10.0% registered in August. Additionally, the nation’s trade deficit widened more than expected to $43.0 billion in September, against market expectations to record a deficit of $40.2 billion. It followed a revised trade deficit of $40.0 billion in the preceding month. Meanwhile, the New York City current business condition index dropped to a level of 54.8 in October, marking its slowest pace of expansion in 6-months, following a reading of 63.7 registered in the previous month. Markets were expecting it to fall to a level of 62.0 in October.
In the Asian session, at GMT0400, the pair is trading at 1.2564, with the EUR trading 0.09% higher from yesterday’s close.
The pair is expected to find support at 1.2517, and a fall through could take it to the next support level of 1.2469. The pair is expected to find its first resistance at 1.2595, and a rise through could take it to the next resistance level of 1.2625.
Trading trends in the Euro today would be determined by the Euro-zone retail sales as well as services PMI data from the region and its peripheries, scheduled in a few hours.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
