EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR slightly declined against the USD and closed at 1.1256.
The European Central Bank, in the account of its latest policy meeting, indicated its readiness to provide fresh stimulus to the economy either by way of rate cuts or commencement of new asset purchase programs. Also, the minutes highlighted ECB’s concerns about the growth and inflation outlook.
Separately, in Germany, the final consumer price index (CPI) climbed 0.3% on monthly basis in June, meeting market consensus and confirming the preliminary figures. In the preceding month, the CPI had recorded to a rise of 0.2%.
The US dollar gained ground against its peers, on the back of upbeat US inflation data.
In the US, data showed that the consumer price index (CPI) rose 1.6% on an annual basis in June, rising by the most in 1.5 years and in line with market expectations. In the prior month, the CPI had registered a gain 1.8%. Moreover, the nation’s seasonally adjusted initial jobless claims eased to a 3-month low level of 209.0K in the week ended 06 July 2019, overshooting market expectations for a drop to a level of 221.0K. Initial jobless claims had registered a revised reading of 222.0K in the previous week.
On the other hand, the US budget deficit narrowed to $8.5 billion in June, compared to market anticipation for a deficit of $7.9 billion. The nation had posted a deficit of $207.8 billion in the prior month.
In the Asian session, at GMT0300, the pair is trading at 1.1267, with the EUR trading 0.10% higher against the USD from yesterday’s close.
The pair is expected to find support at 1.1246, and a fall through could take it to the next support level of 1.1225. The pair is expected to find its first resistance at 1.1287, and a rise through could take it to the next resistance level of 1.1307.
Going ahead, traders would await the Euro-zone’s industrial production for May, slated to release in a few hours. Later in the day, the US producer price index for June, will garner significant amount of investors’ attention.
The currency pair is showing convergence with its 20 Hr moving average and trading above its 50 Hr moving average.
