EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR rose 0.32% against the USD and closed at 1.0883.
In economic news, the French EU normalized consumer price index rebounded above expectations by 0.2% MoM in December, higher than market expectations for an advance of 0.1% and after registering a drop of 0.2% in the previous month. On the other hand, the Euro-zone’s seasonally adjusted industrial production declined more-than-expected by 0.7% MoM in November, compared to a revised rise of 0.8% in the previous month and against market expectations for it to fall by 0.3%.
In the US, the Federal Reserve’s Beige Book report revealed modest growth in 9 of its 12 districts from late November through 04 January 2016. It further indicated that while the jobs market continued to improve moderately, wages and prices remained subdued during the period.
Separately, two top officials of the Fed, the Boston Fed President, Eric Rosengren, and Chicago Fed chief, Charles Evans, expressed concerns about the potential effects of China’s slowdown on the US economy and that the central bank should move carefully in raising interest rates further.
In other economic news, the US budget deficit fell to $14.4 billion in December, compared to market expectations for a deficit of $10.0 billion and following a deficit of $64.6 billion in the previous month. Additionally, the nation’s mortgage applications advanced 21.3% in the week ended 08 January 2016, after dropping by 11.6% in the previous week.
In the Asian session, at GMT0400, the pair is trading at 1.0884, with the EUR trading flat from yesterday’s close.
The pair is expected to find support at 1.0827, and a fall through could take it to the next support level of 1.0770. The pair is expected to find its first resistance at 1.0919, and a rise through could take it to the next resistance level of 1.0954.
Going ahead, investors will look forward to Germany’s real GDP growth data, scheduled to release in a few hours. Moreover, the US initial jobless claims data, due later today, will also grab market attention.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
