EURUSD Movement
On Friday, EUR rose 0.18% against the USD and closed at 1.3694. The US Dollar gave up ground against the Euro after the Chicago Fed President, Charles Evans, ruled out the possibility for an earlier-than-expected Fed-tapering, by stating that he would like to see a few more job reports with similar gains as November for assurance that the improvement seen in the data was sustainable. However, the USD losses were capped, buoyed by an official report from the US, which showed that unemployment rate in the nation declined more-than-expected to 7.0% in November from previous month’s level of 7.3%. Another report revealed that the US non-farm payrolls rose to a reading of 203,000 in November, surpassing analysts’ estimate for a rise of 180,000 and compared to a 200,000 gain recorded in the earlier month.
Meanwhile, in the Euro-zone, on a seasonally adjusted basis, factory orders in Germany declined 2.2% (MoM) in October, more than market estimate for a 0.6% drop and compared to a 3.1% rise witnessed in the preceding month. On the other hand, Italy’s trade deficit narrowed more-than-expected to a level of €4.7 billion in October, from a deficit of €5.6 billion registered in the previous month.
During the weekend, the German Chancellor, Angela Merkel’s plan to rule with the centre-left Social Democrats suffered a blow after the party’s youth section voted “no” to her prospective coalition deal.
In the Asian session, at GMT0400, the pair is trading at 1.3707, with the EUR trading 0.09% higher from Friday’s close.
The pair is expected to find support at 1.3644, and a fall through could take it to the next support level of 1.3581. The pair is expected to find its first resistance at 1.3746, and a rise through could take it to the next resistance level of 1.3785.
Later today, traders would keep a tab on Euro-zone’s investor confidence data, following the release of Germany’s trade balance figures.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
