EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR rose 0.46% against the USD and closed at 1.1798.
On the economic front, the Euro-zone’s seasonally adjusted industrial production retreated more-than-anticipated by 0.9% on a monthly basis in April, highlighting concerns over the strength of the economy and compared to market expectations for a fall of 0.7%. In the previous month, industrial production had advanced 0.5%.
The US Dollar declined against a basket of major currencies, after the US Federal Reserve (Fed) raised the key interest rate, for the second time this year and signalled four more rate hikes in 2018
The Fed, at its latest monetary policy meeting, voted unanimously to lift the benchmark interest rate by a quarter percentage point to a range of 1.75% to 2.00%, citing robust economic growth, strong labour market and inflation moving towards the central bank’s 2.00% goal.
Further, Fed’s Chairman, Jerome Powell, stated that the US economy has strengthened in recent months, but warned over the prospects of higher inflation.
Separately, the nation’s producer price index (PPI) grew 3.1% on a yearly basis in May, more than market expectations for a rise of 2.80%. In the previous month, the PPI had risen 2.6%.
In the Asian session, at GMT0300, the pair is trading at 1.1797, with the EUR trading marginally lower against the USD from yesterday’s close.
The pair is expected to find support at 1.1747, and a fall through could take it to the next support level of 1.1697. The pair is expected to find its first resistance at 1.1826, and a rise through could take it to the next resistance level of 1.1855.
Moving ahead, the European Central Bank’s (ECB) monetary policy meeting, due later in the day, will be closely watched for further hints on monetary policy. Additionally, the release of Germany’s final consumer price index for May, will be eyed by investors. Later in the day, the US advance retail sales for May, followed by the initial jobless claims data and business inventories for April, will pique significant amount of investor attention.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
