EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR rose 0.10% against the USD and closed at 1.1707.
On the data front, Germany’s Gfk consumer confidence index unexpectedly slid to a level of 10.5 in September, defying market expectations for an unchanged reading. In the previous month, the index had recorded a reading of 10.6. Separately, in France, preliminary gross domestic product (GDP) remained unchanged at 1.7% on an annual basis in 2Q 2018, at par with market consensus.
In the US, data showed that the annualised gross domestic product (GDP) advanced 4.2% on a quarterly basis in 2Q 2018, signalling its strongest gain in 4 years. Market participants had envisaged the GDP to rise 4.0%. The annualised GDP had registered a revised gain of 2.2% in the prior quarter while the preliminary figures had indicated an advance of 4.1%.
On the other hand, US pending home sales surprisingly eased 0.7% on monthly basis in July, defying market expectations for an advance of 0.3%. In the preceding month, pending home sales had registered a revised rise of 1.0%. Additionally, the nation’s MBA mortgage applications retreated 1.7% on a weekly basis in the week ended 24 August 2018. In the previous week, mortgage applications had climbed 4.2%.
In the Asian session, at GMT0300, the pair is trading at 1.1702, with the EUR trading slightly lower against the USD from yesterday’s close.
The pair is expected to find support at 1.1665, and a fall through could take it to the next support level of 1.1627. The pair is expected to find its first resistance at 1.1727, and a rise through could take it to the next resistance level of 1.1751.
Looking forward, investors will await the Euro-zone’s consumer confidence, business climate indicator and economic confidence index, all for August, along with Germany’s unemployment rate and the consumer price index, both for August, slated to release in a few hours. Later in the day, the US personal income and personal spending for July followed by initial jobless claims will keep traders on their toes
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
