EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR declined 0.21% against the USD and closed at 1.1200.
On the data front, Germany’s producer price index unexpectedly dropped by 0.1% on a monthly basis in August, compared to market expectations for a flat reading and following a rise of 0.2% in the prior month.
Macroeconomic data released in the US indicated that housing starts dropped more-than-expected by 5.8% on a monthly basis in August, to an annual rate of 1142.0K, dampening optimism over the health of the nation’s housing sector. Markets were anticipating housing starts to ease to a level of 1190.0K, compared to a revised level of 1212.0K in the previous month. Additionally, the nation’s building permits surprisingly fell by 0.4% MoM in August, to an annual rate of 1139.0K, compared to a revised reading of 1144.0K in the previous month.
In the Asian session, at GMT0300, the pair is trading at 1.1154, with the EUR trading marginally higher against the USD from yesterday’s close.
The pair is expected to find support at 1.1128, and a fall through could take it to the next support level of 1.1101. The pair is expected to find its first resistance at 1.1197, and a rise through could take it to the next resistance level of 1.1239.
Going forward, investors would turn all their attention to the outcome of the Federal Reserve’s monetary policy meeting, scheduled to be held later today.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
