EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR rose 0.71% against the USD and closed at 1.1729.
In economic news, Italy’s consumer confidence index unexpectedly advanced to a level of 106.7 in July, compared to market expectations of a fall to a level of 106.2. In the prior month, the index had registered a reading of 106.4.
On the other hand, French consumer confidence index surprisingly dropped to a level of 104.0 in July, after rising to a decade high level of 108.0 in the prior month, while markets expected the index to record an unchanged reading.
The greenback lost ground against a basket of major currencies, after the Federal Reserve (Fed) hinted that it may start rolling back its $4.5 trillion balance sheet as soon as September and expressed concerns on subdued inflation.
The Federal Open Market Committee (FOMC) decided to leave interest rates unchanged, keeping its overnight lending rate at 1.00% to 1.25% as it remained slightly concerned about recent inflation trends. However, the central bank stated that it expects to start winding down its massive balance sheet “relatively soon”, provided that the economy evolves broadly as anticipated.
On the macro front, new home sales in the US climbed 0.8% on a monthly basis, to a level of 610.0K in June, while investors had anticipated for it to rise to a level of 615.0K. New home sales had registered a revised reading of 605.0K in the previous month. Moreover, the nation’s MBA mortgage applications rose 0.4% in the week ended 21 July 2017, after recording a gain of 6.3% in the previous week.
In the Asian session, at GMT0300, the pair is trading at 1.1745, with the EUR trading 0.14% higher against the USD from yesterday’s close.
The pair is expected to find support at 1.1656, and a fall through could take it to the next support level of 1.1567. The pair is expected to find its first resistance at 1.1791, and a rise through could take it to the next resistance level of 1.1837.
Going ahead, investors will look forward to Germany’s GfK consumer confidence index for August, slated to release in a few hours. Additionally, in the US, initial jobless claims as well as flash durable goods orders, advance goods trade balance and flash wholesale inventories, all for June, slated to release later in the day, will keep investors on their toes.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
