EURUSD Movement
For the 24 hours to 23:00 GMT, EUR declined 0.71% against the USD and closed at 1.2975. The greenback registered gains following a 2.1% (MoM) surge in the US factory orders in May. However, the New York City current business conditions index deteriorated sharply in June and the economic optimism index slipped unexpectedly in July.
Separately, the Federal Reserve Bank of New York President, William C. Dudley, indicated that even as the US economy’s underlying fundamentals improve, the central bank shall not begin tightening monetary policy and that the central bank is likely to prolong bond purchases if the economy turns out weaker than Fed forecasts.
Meanwhile, Euro-zone’s Producer Price Index (PPI) declined 0.3% (MoM) in May, and the annual PPI slipped 0.1% in May.
In other news, the Troika (the International Monetary Fund, the European Union and the European Central Bank) has reportedly given a three day ultimatum to Greece to show that it can fulfill the conditions in order to receive the next tranche of €8.1 billion of its rescue loans.
In the Asian session, at GMT0300, the pair is trading at 1.2973, with the EUR trading marginally lower from yesterday’s close.
The pair is expected to find support at 1.2932, and a fall through could take it to the next support level of 1.2890. The pair is expected to find its first resistance at 1.3047, and a rise through could take it to the next resistance level of 1.3120.
After the release of positive manufacturing PMI data from the European nations last Monday, investors now optimistically eye the services PMI data scheduled to release later today in the Euro-zone. Meanwhile, in the US, investors will be looking to initial jobless claims and ADP employment change data for further insight into the health of the world’s largest economy.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
