EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR declined 0.60% against the USD and closed at 1.2310, following mostly soft economic data from the Euro-zone and its peripheries.
Yesterday, retail sales in the Euro-zone rebounded 0.4% on a monthly basis in October, lower than market expectations for a 0.5% rise and compared to a fall of 1.2% registered in September. Meanwhile, the region’s services PMI unexpectedly fell to a level of 51.1 in November, following a reading of 51.3 registered in the previous month and compared to similar market expected figure.
In other economic data, Germany’s services PMI remained unchanged at 52.1 in November, at par with market anticipations, whereas services PMI in Italy surprisingly advanced to 51.8 in November, beating market expectations of a drop to a level of 50.2 and up from previous month’s reading of 50.8. On the other hand, services activity in France deteriorated further in November and remained in contraction territory.
The greenback traded on a stronger footing after the US non-manufacturing composite PMI unexpectedly recorded a rise to 59.3 in November, compared to a level of 57.1 in the prior month, while market expectations were for the index to climb to a level of 57.5.
Meanwhile, the nation’s ADP private sector employment advanced by 208.00 K in November, lower than market anticipations of an advance of 222.0 K and compared to a revised gain of 233.0 K registered in the prior month. Additionally, the Markit services PMI surprisingly fell to a reading of 56.2 in November, lower than market expectations for a rise to a level of 56.5. Also, the nation’s mortgage applications fell 7.3% on a weekly basis in the week ended 28 November 2014, following a recorded a drop of 4.3% registered in the prior week.
Separately, the Fed’s latest Beige Book report indicated that the nation’s economic activity continued to expand across most of the country in October and November 2014, with employment market, consumer spending and business investment all picking up in most of the districts while retailers remained optimistic about the upcoming holiday season.
In the Asian session, at GMT0300, the pair is trading at 1.2307, with the EUR trading marginally lower from yesterday’s close.
The pair is expected to find support at 1.2275, and a fall through could take it to the next support level of 1.2243. The pair is expected to find its first resistance at 1.2365, and a rise through could take it to the next resistance level of 1.2423.
Trading trends in the Euro today are expected to be determined by the ECB’s interest rate decision, followed by a speech from the central bank Chief, Mario Draghi, scheduled later today. Meanwhile, the US initial jobless claims data would keep investors on their toes.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
