EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR rose 0.85% against the USD and closed at 1.1121, after the current account surplus for Italy and Eurozone widened in June.
The greenback weakened after the consumer prices rose less than expected by 0.10% MoM in the US in July, compared to a rise of 0.20% in the previous month. The dollar was pushed further downwards after Fed’s minutes for the July monetary policy meeting highlighted that economic conditions were approaching a point of rate hike but did not warrant for immediate hikes. Additionally, the Fed noted that more data is needed to prove that economic growth is sufficient enough to take inflation nearer to its target before the central bank is ready to increase rates.
In the Asian session, at GMT0300, the pair is trading at 1.1134, with the EUR trading 0.11% higher from yesterday’s close.
The pair is expected to find support at 1.1051, and a fall through could take it to the next support level of 1.0969. The pair is expected to find its first resistance at 1.1182, and a rise through could take it to the next resistance level of 1.1231.
Investors would keenly wait for the release of the crucial US initial jobless claims data for the week ended 14 August, due later in the day.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
