EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR rose 0.66% against the USD and closed at 1.1369.
In Germany, the Gfk consumer confidence index eased to level of 10.4 in December, more than market expectations for a fall to a level of 10.5. In the prior month, the index had registered a level of 10.6.
The US dollar declined against a basket of currencies, after the Federal Reserve Chairman, Jerome Powell, signalled fewer rate hikes next year. Further, he stated that current interest rates are “just below” estimates of neutral for the economy.
In the US, data showed that the US annualised gross domestic product climbed 3.5% on a quarterly basis in 3Q 2018, at par with market consensus and confirming the preliminary figures. In the prior quarter, the GDP had advanced 4.2%. Additionally, the MBA mortgage applications rebounded 5.5% on a weekly basis in the week ended 23 November 2018, following a decline of 0.1% in the previous week. Meanwhile, the nation’s advance goods trade deficit widened to a level $77.2 billion in October, following a revised deficit of $76.3 billion in the previous month. Market participants had envisaged the deficit to expand to a level of $77.0 billion. Further, the Richmond Fed manufacturing index unexpectedly slid to a level of 14.0 in November, compared to market anticipations for a steady reading. In the previous month, the index had registered a reading of 15.0. Moreover, new home sales dropped 8.9%, on a monthly basis to a level of 544.0K in October, compared to market expectations for a reading of 575.0K. New home sales had registered a revised level of 597.0K in the prior month.
In the Asian session, at GMT0400, the pair is trading at 1.1379, with the EUR trading 0.09% higher against the USD from yesterday’s close.
The pair is expected to find support at 1.1301, and a fall through could take it to the next support level of 1.1224. The pair is expected to find its first resistance at 1.1422, and a rise through could take it to the next resistance level of 1.1466.
Moving ahead, traders would keep an eye on the Euro-zone’s economic confidence, industrial confidence and consumer confidence, all for November along with Germany’s consumer price index and unemployment change, both for November, set to release in a few hours. Later in the day, the US FOMC November meeting minutes, followed by personal income, personal spending and pending home sales data, all for October, will keep investors on their toes. Additionally, the US initial jobless claims will pique significant amount of investors’ attention.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
