EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR rose 0.32% against the USD and closed at 1.1133, following the release of robust manufacturing PMI data from the Euro-zone and Germany.
Data showed that the Euro-zone’s final Markit manufacturing PMI rose to a six-month high level of 52.8 in June, compared to a reading of 51.5 in the prior month. The preliminary figures had registered a reading of 52.6. Moreover, in Germany, final manufacturing PMI advanced to a 28-month high level of 54.5 in June, buoyed by an increase in both domestic as well as foreign demand. Manufacturing PMI had registered a reading of 52.1 in the prior month and the preliminary figures had indicated an advance to 54.4.
In other economic news, the Euro-zone’s unemployment rate nudged down in line with market expectations to 10.1% in May, its lowest level since July 2011 and from 10.2% in the previous month.
In the US, the ISM manufacturing activity index advanced more-than-expected to a level of 53.2 in June, from a reading of 51.3 in the previous month. Further, the nation’s final Markit manufacturing PMI advanced to a level of 51.3 in June, compared to a level of 50.7 in the previous month. The preliminary figures had recorded an advance to 51.4.
On the other hand, US construction spending registered an unexpected drop of 0.8% MoM in May, after recording a 1.8% fall in the previous month and compared to investor expectations for it to rise 0.7%.
In the Asian session, at GMT0300, the pair is trading at 1.1136, with the EUR trading marginally higher against the USD from Friday’s close.
The pair is expected to find support at 1.1081, and a fall through could take it to the next support level of 1.1025. The pair is expected to find its first resistance at 1.1180, and a rise through could take it to the next resistance level of 1.1223.
Going ahead, investors will look forward to the Euro-zone’s Sentix investor confidence index data for July, scheduled to release in a few hours.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
