EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR rose marginally against the USD and closed at 1.0993, after the Euro-zone’s unemployment rate dropped unexpectedly to a four-year low.
Data revealed that Euro-zone’s unemployment rate dropped to a level of 10.8% in September, from an upwardly revised reading of 10.9% in the previous month. Investors had expected it to rise to a level of 11.0%. Further, the region’s preliminary consumer price index inched up to 0.0% YoY in October, from its previous reading of -0.1%. Meanwhile, German retail sales remained flat MoM in September, lower than market expectations for an advance of 0.4%, and after falling by a revised 0.7% in the prior month.
Elsewhere, Italy’s unemployment rate dropped unexpectedly to a level of 11.8% in September, from 11.9% in the previous month. Market participants had anticipated an unchanged reading.
The greenback lost ground, after the US consumer spending in September recorded its smallest gain in eight months and the nation’s personal income barely rose. The US personal spending rose less-than-expected by 0.1% in September, compared to a rise of 0.4% in the previous month. Market expectation was for personal spending to climb 0.2%. Further, US personal income climbed 0.1% MoM in September, after rising by a revised 0.4% in the previous month. Market expectation was for personal spending to climb 0.2%.
On the other hand, the Chicago purchasing managers index climbed to a level of 56.2 in October, compared to market expectations of a rise to 49.4. In the previous month, the index had recorded a reading of 48.7. Meanwhile, the Reuters/Michigan consumer sentiment index rose to a level of 90.0 in October, compared to market expectations of a rise to 92.5. The index had registered a level of 87.2 in the previous month. The preliminary figures had recorded an advance to 92.1.
In the Asian session, at GMT0400, the pair is trading at 1.1029, with the EUR trading 0.33% higher from Friday’s close.
The pair is expected to find support at 1.0972, and a fall through could take it to the next support level of 1.0915. The pair is expected to find its first resistance at 1.1080, and a rise through could take it to the next resistance level of 1.1130.
Going ahead, market participants will closely watch the Markit manufacturing PMI data across the Euro-zone, scheduled to be released in a few hours. Additionally, the US ISM manufacturing PMI and construction spending data, scheduled to be released later today, will also attract a significant amount of investor attention.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
