EURUSD Movement
For the 24 hours to 23:00 GMT, EUR declined 0.07% against the USD and closed at 1.2965, weighed down by weak economic data in the Euro-zone and Germany.
Yesterday, the European Central Bank President, Mario Draghi defended central bank’s plan to buy government bonds that has drawn strong opposition from Germany. He stated that the bond purchases known as the Outright Monetary Transactions (OMTs) would not lead to inflation. Separately, Greece’s Finance Minister, Yannis Stournaras announced that he had agreed on a new austerity package with its international creditors and won more time to fix the debt-crippled nation’s finances, however, the European Central Bank insisted that there was no deal yet.
On the economic front, Euro-zone’s composite PMI fell to 45.8 in October, from 46.1 in September, while the preliminary manufacturing PMI fell to a seasonally adjusted 45.3 in October, compared to a final reading of 46.1 in September. Meanwhile, service PMI climbed to 46.2 in October. Moreover, Germany’s Ifo business climate index dropped to a reading of 100.0 in October. Additionally, the current assessment index retreated to 107.3 in October, while the expectations index fell to 93.2 in October. Also, the German manufacturing PMI fell to 45.7 in October, while the services activity index fell to 49.3 in October. Separately, the preliminary manufacturing PMI in France rose to a seasonally adjusted reading of 43.5 in October.
In the Asian session, at GMT0300, the pair is trading at 1.2971, with the EUR trading marginally higher from yesterday’s close.
The pair is expected to find support at 1.2929, and a fall through could take it to the next support level of 1.2886. The pair is expected to find its first resistance at 1.3005, and a rise through could take it to the next resistance level of 1.3039.
Trading trends in the pair today are expected to be determined by the release of German retail sales and Euro-zone’s M3 money supply.
The currency pair is trading in between its 20 Hr and 50 Hr moving averages.
