EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR declined 0.07% against the USD and closed at 1.1083.
Data showed that Euro-zone’s manufacturing PMI unexpectedly rose to a level of 47.0 in August, defying market expectations for a drop to a level of 46.2. In the previous month, the index had recorded a reading of 46.5. Additionally, the region’s services PMI unexpectedly climbed to a level of 53.4 in August, confounding market consensus for a decline to a level of 53.0. In the previous month, the index had recorded a reading of 53.2. Meanwhile, the consumer sentiment deteriorated more than market forecast to -7.1 in August, compared to a level of -6.6 in the previous month.
In Germany, the manufacturing PMI unexpectedly advanced to a level of 43.6 in August, defying market forecast for a fall to a level of 43.0. In the previous month, the index had recorded a reading of 43.2. However, the nation’s services PMI dropped to a level of 54.4 in August, less than market expectations for a decline to a level of 54.0. In the previous month, the index had recorded a reading of 54.5.
Separately, the European Central Bank (ECB), in its latest monetary policy meeting minutes, indicated that the central bank will launch fresh stimulus measures in September, which could include rate cuts and asset purchases, in an effort to address the region’s economic slowdown. Meanwhile, officials discussed the idea of changing its key inflation target as part of a potential broader strategic review.
In the US, the Markit manufacturing PMI unexpectedly declined to a level of 49.9 in August. In the prior month, the PMI had recorded a reading of 50.4. Further, the Markit services PMI decreased to 50.9 in August, more than market expectations for a fall to a level of 52.8. In the previous month, the Markit services PMI had registered a level of 53.0. On the contrary, seasonally adjusted initial jobless claims fell more-than-anticipated to a level of 209.0K in the week ended 17 August 2019, compared to a revised level of 221.0K in the previous week. Further, the leading index rose 0.5% on a monthly basis in July, compared to a revised drop of 0.1% in the previous month.
In the Asian session, at GMT0300, the pair is trading at 1.1074, with the EUR trading 0.08% lower against the USD from yesterday’s close.
The pair is expected to find support at 1.1054, and a fall through could take it to the next support level of 1.1035. The pair is expected to find its first resistance at 1.1103, and a rise through could take it to the next resistance level of 1.1133.
With no macroeconomic releases across the Euro-zone today, traders would look forward to the US new home sales for July along with US Federal Reserve Chairman Jerome Powell’s speech, slated to release later in the day.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
