EURUSD Movement
For the 24 hours to 23:00 GMT, EUR declined 0.51% against the USD and closed at 1.2994, as weak Euro-zone and German PMI data raised concerns over the health of the economy, thereby raising speculation that the European Central Bank could lower interest rates.
Yesterday, manufacturing purchasing managers’ index (PMI) in the Euro-zone fell to 46.5 in April, while in Germany the preliminary manufacturing PMI fell to a four-month low of 47.9 in April. Meanwhile, in France, the preliminary manufacturing PMI climbed to a reading of 44.4 in April. Additionally, the business confidence index in France slipped to a reading of 88.0 in April.
Separately, in the US, manufacturing PMI declined to a reading of 52.0 in April, its lowest reading in six months. Moreover, according to the Federal Reserve Bank (Fed) of Richmond’s latest survey, manufacturing activity in the central Atlantic region declined to a reading of -6.0 in April. Also, new home sales rose by 1.5% to an annual rate of 417.0 K in February. Separately, the Federal Housing Finance Agency (FHFA) reported that its house price index (HPI) rose 0.7% (MoM) in February.
In the Asian session, at GMT0300, the pair is trading at 1.2999, with the EUR trading marginally higher from yesterday’s close.
The pair is expected to find support at 1.2952, and a fall through could take it to the next support level of 1.2906. The pair is expected to find its first resistance at 1.3065, and a rise through could take it to the next resistance level of 1.3132.
Market now awaits the German IFO business climate, current assessment and expectations data scheduled for release later today, which are expected to fall. In the US, investors would keenly eye the durable goods orders data to get some insight on the momentum of the US economy.
The currency pair is showing convergence with its 20 Hr moving average and is trading below its 50 Hr moving average.
