EURUSD Movement
On Friday, the EUR rose 0.23% against the USD and closed at 1.1203.
In economic news, the Euro-zone’s seasonally adjusted M3 money supply rose 5.0% in the
three-month period ended August, lower than market anticipated increase of 5.2% and compared to a gain of 5.1% in the preceding period.
In the US, annualized GDP growth expanded more than anticipated by 3.9% in the second quarter of 2015, mainly due to gains in construction spending and construction, thereby strengthening the case of the Fed interest rate hike in the nation later this year. In the preceding quarter, the US economy had grown 3.7%.
Other economic data showed that the University of Michigan’s final estimate of the consumer sentiment index improved to a level of 87.2 in September, exceeding market expectations of an increase to a reading of 86.5 and compared to prior month’s level of 85.7. Meanwhile, the preliminary estimate of the US services PMI fell to a level of 55.6 in September, in line with market expectations. The index had registered a level of 56.1 in the previous month.
Separately, the Kansas City Fed President, Esther George, in a speech, opined that the US central bank should not wait for additional incoming data and should raise key interest rates soon, so that it can gradually increase them over the period.
In the Asian session, at GMT0300, the pair is trading at 1.1200, with the EUR trading slightly lower from Friday’s close.
The pair is expected to find support at 1.1139, and a fall through could take it to the next support level of 1.1078. The pair is expected to find its first resistance at 1.1238, and a rise through could take it to the next resistance level of 1.1276.
Trading trends in the pair today are expected to be determined by the series of macroeconomic releases in the US, scheduled later today.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
