EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR declined 0.29% against the USD and closed at 1.0764.
On the economic data front, final reading of the Eurozone’s Markit manufacturing PMI rose above expectations to a 69-month high level of 55.2 in January, compared to a reading of 54.9 in the previous month. The preliminary figures had recorded a rise to 55.1. Meanwhile in Germany, manufacturing PMI rose to a 3-year high level of 56.4 in January, from 55.6 in December. The preliminary figures had recorded a rise to 56.5.
In the US, the Federal Reserve held its fire on interest rates as widely expected, keeping the benchmark overnight lending rate steady at 0.50% to 0.75%. However, policymakers remained optimistic on the outlook for the US economy.
In other economic news, private sector employment in the US climbed by 246.0K in January, after registering a revised gain of 151.0K in the prior month. Further, the ISM manufacturing activity index advanced more-than-expected to 56.0 in January, from a revised reading of 54.5 in the previous month.
In the Asian session, at GMT0400, the pair is trading at 1.0788, with the EUR trading 0.22% higher against the USD from yesterday’s close.
The pair is expected to find support at 1.0742, and a fall through could take it to the next support level of 1.0696. The pair is expected to find its first resistance at 1.0821, and a rise through could take it to the next resistance level of 1.0854.
Going ahead, investors look forward to a speech by the ECB President, Mario Draghi, due later today. In addition to this, the US weekly jobless claims data will be closely eyed.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
