EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR declined 0.06% against the USD and closed at 1.2622, after manufacturing PMI in Germany deteriorated to 49.9 in September, lower than market expectations for a level of 50.3 and compared to a similar reading registered in the previous month. Additionally, the Euro-zone’s manufacturing PMI unexpectedly fell to 50.3 in September, compared to previous month’s reading of 50.5. Market expectations for the index were to record a flat reading in September.
Elsewhere in Italy, the manufacturing PMI surprisingly advanced to 50.7 in September, while French manufacturing PMI remained in contraction territory in the same month.
In the US, the ISM manufacturing activity index eased to 56.6 in September, lower than market expectations of a drop to 58.5 and compared to a reading of 59.0 in the prior month. Additionally, construction spending surprisingly dropped 0.8% on a monthly basis in August, compared to a revised rise of 1.2% in July. Markets were expecting it to register 0.5% gain. Similarly, number of mortgage applications dropped 0.2% on a weekly basis in the week ended September 26. Meanwhile, the ISM reported that the nation’s prices paid index unexpectedly rose to a level of 59.5 in September, beating market expectations of a level of 57.0. Also, private sector employment registered a rise of 213.0 K in September, higher than market expectations of an advance of 205.0 K jobs.
In the Asian session, at GMT0300, the pair is trading at 1.2645, with the EUR trading 0.18% higher from yesterday’s close.
The pair is expected to find support at 1.2603, and a fall through could take it to the next support level of 1.2562. The pair is expected to find its first resistance at 1.2667, and a rise through could take it to the next resistance level of 1.2690.
Trading trends in the Euro today would be determined by the ECB’s interest rate decision, scheduled later today. Meanwhile, investors would keep a close eye on the US initial jobless claims, scheduled to release ahead in the day.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
