EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR declined 0.57% against the USD and closed at 1.2306.
The US Dollar advanced against a basket of major currencies, on upbeat US economic reports. Data revealed that the number of Americans filing for fresh jobless claims dropped more-than-expected to a level of 226.0K in the week ended 10 March, thus pointing to continued strength in the nation’s labour market. Initial jobless claims had recorded a revised reading of 230.0K in the previous week, while investors had anticipated for a fall to a level of 228.0K.
Other data revealed that the US import price index rose 0.4% on a monthly basis in February, exceeding market expectations for a rise of 0.2%. The index had registered a revised rise of 0.8% in the prior month. Moreover, the nation’s export price index advanced less-than-anticipated by 0.2% MoM in February, while investors had envisaged for a gain of 0.3%. The index had recorded a rise of 0.8% in the previous month. Furthermore, the nation’s New York Empire State manufacturing index registered a rise to a level of 22.5 in March, beating market consensus for an advance to a level of 15.0. The index had registered a level of 13.1 in the prior month.
On the contrary, the nation’s NAHB housing market index unexpectedly eased to a level of 70.0 in March, dipping for the third straight month and defying market consensus for a rise to a level of 72.0. In the prior month, the index had registered a revised level of 71.0. Moreover, the nation’s Philadelphia Fed manufacturing index declined to a level of 22.3 in March, more than market anticipation for a fall to a level of 23.0 and compared to a level of 25.8 in the previous month.
In the Asian session, at GMT0400, the pair is trading at 1.2308, with the EUR trading slightly higher against the USD from yesterday’s close.
The pair is expected to find support at 1.2274, and a fall through could take it to the next support level of 1.2241. The pair is expected to find its first resistance at 1.2362, and a rise through could take it to the next resistance level of 1.2417.
Going ahead, investors would keep a close watch on Euro-zone’s final inflation figures for February, slated to release in a few hours. Additionally, the US flash Michigan consumer sentiment index for March as well as housing starts, building permits, industrial and manufacturing production data, all for February, scheduled to release later in the day, will garner significant amount of market attention.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
