EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR rose 0.36% against the USD and closed at 1.1183.
On the data front, Euro-zone’s seasonally adjusted industrial production eased 0.5% on a monthly basis in October, at par with market expectations. In the previous month, industrial production had recorded a revised fall of 0.1%.
Separately, in Germany, the final consumer price index (CPI) rose 1.1% on an annual basis in November, meeting market expectations and confirming the preliminary print. In the prior month, the CPI had registered a similar rise.
The European Central Bank (ECB), in its latest policy meeting, left its key interest rate steady at 0.0% and stated that it would maintain the rates at their current level until inflation reaches near its 2% target. Further, the central bank forecasted annual real GDP growth for the euro area at 1.2% in 2019, 1.1% in 2020 and 1.4% in 2021 and 2022. Moreover, the central bank decided to continue its bonds buying programme at a rate of €20 billion per month in order to stimulate economic momentum.
In the US, data showed that the producer price index climbed 1.1% on an annual basis in November, less than market expectations for a rise of 1.2%. In the prior month, the index had registered a similar rise. Moreover, the US seasonally adjusted initial jobless claims rose to a 2-year high level of 252.0K in the week ended 06 December 2019, more than market consensus for an increase to a level of 213.0K. Initial jobless claims had recorded a reading of 203.0K in the prior week.
In the Asian session, at GMT0400, the pair is trading at 1.1177, with the EUR trading 0.05% lower against the USD from yesterday’s close.
The pair is expected to find support at 1.1120, and a fall through could take it to the next support level of 1.1064. The pair is expected to find its first resistance at 1.1216, and a rise through could take it to the next resistance level of 1.1256.
Amid lack of macroeconomic releases in the Euro-zone today, traders would keep an eye on the US retail sales for November and business inventories for October, set to release later in the day.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
