EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR traded marginally lower against the USD and closed at 1.2540, after the Euro-zone as well as Germany registered dismal economic data.
Yesterday, economic data showed that manufacturing PMI in Germany unexpectedly slowed down to a level of 50.0 in November, lower than market expectations of an advance to a reading of 51.5 and compared to previous month’s mark of 51.4, while services PMI surprisingly dropped to 52.1 in November, against market expectations to climb to a level of 54.5, thus indicating that the Euro-zone’s biggest economy is struggling.
Similarly, the Euro-zone’s manufacturing PMI unexpectedly fell to 50.4 in November, compared to a reading of 50.6 registered in the prior month, while markets expected it to climb to 50.8. Additionally, services PMI figure from the region in November also disappointed market participants. Meanwhile, consumer confidence in the common-currency region surprisingly fell to -11.6 in November, from -11.1 in October. Markets had expected an improvement to -10.7.
Elsewhere, in France, services as well as manufacturing sector remained in the contraction territory in November. Separately, Italy’s industrial orders eased 1.5% on a monthly basis in September, higher than market expectations for a fall of 1.0%.
In the US, the consumer price index (CPI) remained steady on a MoM basis in October, defying market expectations for a fall of 0.1%. It had risen 0.1% in the previous month. Meanwhile, existing home sales jumped by 1.5% on a monthly basis in October, beating market expectations to register a drop of 0.4% and compared to a gain of 2.6% recorded in the preceding month. Additionally, the nation’s leading indicator registered a rise of 0.9% in October on a monthly basis, compared to a revised advance of 0.7% in the prior month, while market anticipations were for leading indicator to climb 0.6%. Also, the Philadelphia Fed’s manufacturing activity surged to a 21-year high reading of 40.8 in November, higher than market expectations of a drop to 18.5 and following a level of 20.7 registered in October. On the other hand, the nation’s manufacturing PMI unexpectedly fell to a 10-month low level of 54.7 in November, lower than market expectations of a rise to a reading of 56.3. Additionally, the number of people claiming initial jobless benefits surprisingly advanced to 291.0 K in the week ended November 15, compared to market anticipations to ease to a level of 284.0 K.
In the Asian session, at GMT0400, the pair is trading at 1.2562, with the EUR trading 0.17% higher from yesterday’s close.
Earlier today, the San Francisco Fed President, John Williams stated that slow economic growth coupled with low interest rates was a global concern.
The pair is expected to find support at 1.2519, and a fall through could take it to the next support level of 1.2476. The pair is expected to find its first resistance at 1.2591, and a rise through could take it to the next resistance level of 1.2619.
Trading trends in the Euro today are expected to be determined by the ECB Chief, Mario Draghi’s speech, scheduled later today.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
