EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR declined 0.27% against the USD and closed at 1.1369.
In the US, data showed that the housing price index rose 0.4% on a monthly basis in April, surpassing than market consensus for a gain of 0.2%. In the previous month, the index had recorded an advance of 0.1%.
On the other hand, the US Richmond Fed manufacturing index declined to a level of 3.0 in June, compared to a reading of 5.0 in the prior month. Market participants had envisaged the index to record a drop to a level of 2.0. Moreover, the nation’s CB consumer confidence index fell to a 2-year low level of 121.5 in June, amid ongoing trade tensions and more than market expectations for a decrease to a level of 131.0. In the previous month, the index had recorded a revised reading of 131.3. Also, new home sales unexpectedly plummeted to its lowest level in 5-months by 7.8% on a monthly basis to a level of 626.0K in May, compared to a revised level of 679.0K in the prior month. Markets had anticipated new home sales to register a rise to a level of 684.0K.
The US dollar rose against its major peers, after Federal Reserve (Fed) Chairman, Jerome Powell, dampened hopes for a potential rate cut.
In a speech, US Fed Jerome Powell stated that the central bank will reassess whether current economic uncertainties call for lower rates and will take a wait-and-see approach to determine its next move on interest rates. Powell reiterated that the central bank will “act as appropriate” to sustain the US economic expansion. He added that baseline outlook for the economy remains favourable, despite rising crosscurrents in the global economy. However, he warned that the economy is facing growing uncertainties about trade and worries about the global economy.
In the Asian session, at GMT0300, the pair is trading at 1.1354, with the EUR trading 0.13% lower against the USD from yesterday’s close.
The pair is expected to find support at 1.1328, and a fall through could take it to the next support level of 1.1302. The pair is expected to find its first resistance at 1.1396, and a rise through could take it to the next resistance level of 1.1438.
Looking ahead, traders would keep an eye on Germany’s GfK consumer confidence index for July, slated to release in a few hours. Later in the day, the US durable goods orders and advance goods trade balance, both for May along with the MBA mortgage applications, will be on investors’ radar.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
