EURUSD Movement
For the 24 hours to 23:00 GMT, EUR declined 0.46% against the USD and closed at 1.3075. The greenback registered gains as stronger-than-expected US economic data added to speculation the Federal Reserve might scale back its quantitative easing programme.
On the housing front, things looked very favourable as the US S&P/Case-Shiller Composite Home Price Index (HPI) jumped 12.1% in April to a reading of 152.37, while new home sales edged up 2.1% to an annual rate of 476.0K in May. Meanwhile, orders for durable goods rose 3.6% (MoM) in May, while the Richmond manufacturing activity surged more-than-expected in June and consumer confidence in the US advanced to a reading of 81.40 in June, its highest level in more than five years.
In the Euro-zone, the European Central Bank (ECB) President Mario Draghi defended the ECB’s bond-purchase plan – Outright Monetary Transactions (OMT) – that was introduced last year to head off the risk of a Euro-zone break-up, saying the bloc is more stable as a result.
Separately, French industrial business climate index and production outlook improved in June. Also, Spain’s producer prices unexpectedly rose in May, while Italian retail sales dropped in line with expectations in April.
In the Asian session, at GMT0300, the pair is trading at 1.3067, with the EUR trading marginally lower from yesterday’s close.
The pair is expected to find support at 1.3031, and a fall through could take it to the next support level of 1.2996. The pair is expected to find its first resistance at 1.3127, and a rise through could take it to the next resistance level of 1.3188.
Germany’s consumer confidence data due later today is expected to remain stable in July. Meanwhile, the US gross domestic product data due later today is eagerly awaited to give further insights over the pace of the country’s economic growth.
The currency pair is trading just below its 20 Hr and 50 Hr moving averages.
