EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR marginally declined against the USD and closed at 1.1351.
In economic news, the Euro-zone’s seasonally adjusted final gross domestic product (GDP) rose 0.6% QoQ in 1Q 2016, compared to an advance of 0.3% in the prior quarter. The preliminary figures had recorded a rise of 0.5%. Meanwhile in Germany, the seasonally adjusted industrial production rose above expectations by 0.8% MoM in April, expanding for the first time in three months, mainly led by capital goods output. In the previous month, industrial production had dropped by a revised 1.1%.
In the US, IBD/TIPP economic optimism index dropped to a level of 48.2 in June, in line with market expectations and after registering a reading of 48.7 in the previous month.
Separately, the World Bank slashed its 2016 global growth forecast to 2.4% from its earlier January estimate of 2.9%, citing low commodity prices, sluggish demand in advanced economies, weak trade and diminishing capital flows.
In the Asian session, at GMT0300, the pair is trading at 1.1366, with the EUR trading 0.13% higher against the US Dollar from yesterday’s close.
The pair is expected to find support at 1.1341, and a fall through could take it to the next support level of 1.1317. The pair is expected to find its first resistance at 1.1385, and a rise through could take it to the next resistance level of 1.1405.
Moving ahead, investors will look forward to the US MBA weekly mortgage applications and JOLTS job openings data for April, scheduled to release later today.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
