EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR rose 0.83% against the USD and closed at 1.1316, amid news that Britain and the European Union are close to reach a Brexit deal.
On the data front, the Euro-zone’s ZEW economic sentiment index fell to a level of -22.0 in November, compared to a reading of -19.4 in the prior month.
Separately, in Germany, the final consumer price index (CPI) rose to a 10-year high level of 2.5% on a yearly basis in October, at par with market expectations and confirming the preliminary print. In the previous month, the CPI had climbed 2.3%. Moreover, the nation’s ZEW economic sentiment index unexpectedly advanced to a level of -24.1 in November, defying market anticipations for a fall to a level of -26.0. In the preceding month, the index had recorded a reading of -24.7. On the other hand, Germany’s current situation index dropped to a level of 58.2 in November, compared to market consensus for a decline to a level of 65.0. In the prior month, the index had registered a level of 70.1.
In the US, data showed that, the US NIFB small business optimism index unexpectedly slid to a level of 107.4, defying market expectations for a gain to a level of 108.0. In the previous month, the index had recorded a reading of 107.9.
In the Asian session, at GMT0400, the pair is trading at 1.1299, with the EUR trading 0.15% lower against the USD from yesterday’s close.
The pair is expected to find support at 1.1241, and a fall through could take it to the next support level of 1.1182. The pair is expected to find its first resistance at 1.1339, and a rise through could take it to the next resistance level of 1.1378.
Going forward, traders would await Euro-zone’s 3Q gross domestic product (GDP) data and industrial production for September, along with Germany’s 3Q GDP data, set to release in a few hours. Later in the day, the US consumer price index and average hourly earnings, both for October along with MBA mortgage applications, will keep investors on their toes.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
