EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR rose 0.31% against the USD and closed at 1.3574, as the latter declined after the IMF, citing a harsh winter in the US, slashed its growth-outlook on the world’s largest economy to 2.0% in 2014, from its earlier growth-estimate of 2.8%. However, the organization kept its 2015 growth forecast for the US economy intact at 3.0%.Separately, the IMF Managing Director, Christine Lagarde, opined that “a gradual path of interest normalization” in the US would be a right approach for the economy. In other economic news, on a month-on-month basis, industrial production in the US rose more-than-expected 0.6% in May, the third increase in four months while capacity utilisation rate for total industry increased by 0.2 percentage point to 79.1% in May.
Meanwhile, in the Euro-zone, the Eurostat reported that, the year-on-year consumer inflation rate dropped to a five-year low level of 0.5% in May, in-line with economists’ expectations and compared to previous month’s level of 0.7%.
In the Asian session, at GMT0300, the pair is trading at 1.3563, with the EUR trading 0.08% lower from yesterday’s close.
The pair is expected to find support at 1.3521, and a fall through could take it to the next support level of 1.3478. The pair is expected to find its first resistance at 1.3597, and a rise through could take it to the next resistance level of 1.3630.
During the later course of the day, market participants would eye ZEW’s economic sentiment report for the Euro-zone and the German economy while greenback traders would keep a tab on the US consumer inflation, housing starts and building permits data, before taking any major bets in the US Dollar.
The currency pair is showing convergence with its 20 Hr moving average and is trading just above its 50 Hr moving average.
