EURUSD Movement
On Friday, EUR rose 0.51% against the USD and closed at 1.2443.
The greenback lost ground after the US non-farm pay rolls data rose by 214.0 K in October, lower than market expectations to add 235.0 K non-farm payrolls and compared to a revised gain of 256.0 K jobs added in the previous month.
However, losses were limited as the nation’s unemployment rate surprisingly eased to a level of 5.8% in October, falling to its lowest level since 2008, beating market expectations for a level of 5.9% and compared to a similar level registered in the previous month.
In other economic news, average hourly earnings of all employees in the US recorded a rise of 0.1% in October, less than market expectations for a rise of 0.2%. Also, consumer credit climbed by $15.92 billion in September, less than market expectations for a rise of $16.50 billion. In the previous month, consumer credit had advanced by a revised $14.03 billion.
Separately, the Fed Chairwoman, Janet Yellen, pointed towards weak government support across the globe as a reason for a slowdown in global economic growth and urged politicians across the globe to get their fiscal policies in order to boost their economies in times of uncertainty.
The Chicago Fed President, Charles Evans, urged the central bank to remain “extraordinarily patient” while increasing interest rates. He opined that the US economy would expand at a pace of 3% in the next 18 months or more, but warned that he is skeptical whether the nation’s inflation would return to a 2% level, stating that he expects the nation’s inflation to rise to just 1.7% in 2017.
Elsewhere, in Germany, the seasonally adjusted industrial production registered a rise of 1.4% on a MoM basis in September, compared to a revised drop of 3.1% in the prior month, while market anticipations were for industrial production to advance 2.0%. Meanwhile, the nation’s trade surplus widened to €21.9 billion in September, lower than market expectations for an advance to €19.0 billion and following a surplus of €14.0 billion registered in September. Also German current account surplus climbed to €22.3 billion in September, following a revised current account surplus of €10.5 billion in the prior month.
In the Asian session, at GMT0400, the pair is trading at 1.2485, with the EUR trading 0.34% higher from Friday’s close.
The pair is expected to find support at 1.2399, and a fall through could take it to the next support level of 1.2312. The pair is expected to find its first resistance at 1.2531, and a rise through could take it to the next resistance level of 1.2576.
Trading trends in the pair today are expected to be determined by global macroeconomic news.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
