EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR declined 0.61% against the USD and closed at 1.1309, after the Euro-zone’s seasonally adjusted GDP advanced less-than-expected by 0.5% QoQ in 1Q 2016, compared to market expectations for an advance of 0.6%. The preliminary figures had recorded an advance of 0.6%. The region’s GDP had registered a rise of 0.3% in the prior quarter. On the other hand, the seasonally adjusted preliminary German GDP rose more-than-expected by 0.7% QoQ in 1Q 2016, driven primarily by robust domestic demand. Investors had expected it to advance by 0.6%, following a 0.3% rise in the previous quarter. Meanwhile, the nation’s final consumer price index dropped in line with market expectations by 0.4% MoM in April. In the previous month, the consumer price index had advanced 0.8%. The preliminary figures had indicated a fall of 0.2%.
The greenback gained ground, after US retail sales advanced more-than-expected in April. Data showed that the nation’s advance retail sales rose 1.3% in April, its largest gain since March 2015, suggesting that the US economy is regaining momentum. Markets were anticipating advance retail sales to climb 0.8%, following a 0.4% decline in the previous month. Moreover, the nation’s flash Reuters/Michigan consumer sentiment index rise to a level of 95.8 in May, higher than market expectations of an advance to a level of 89.5. The index had registered a reading of 89.0 in the prior month.
In the Asian session, at GMT0300, the pair is trading at 1.1305, with the EUR trading marginally lower from Friday’s close.
The pair is expected to find support at 1.1265, and a fall through could take it to the next support level of 1.1226. The pair is expected to find its first resistance at 1.1360, and a rise through could take it to the next resistance level of 1.1416.
Going ahead, investors will look forward to the German Buba monthly report, scheduled to release in a few hours. Additionally, the US NAHB housing market index for May, due later today, will also attract market attention.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
