EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR rose 0.12% against the USD and closed at 1.2953, after the ZEW economic sentiment index in Germany, Euro-zone’s biggest economy, dropped lesser than expected to 6.9 in September, compared to market expectations of a fall to a level of 5.0 and following previous month’s level of 8.6. The German ZEW Survey for the current situation also came in below expectations at 25.4 in September. Meanwhile, the Euro-zone’s economic sentiment further deteriorated to 14.2 in September, lower than market expectations of a drop to a level of 21.3 and compared to a level of 23.7 in August. Additionally, the region’s labour cost advanced 1.2% on an annual basis in 2Q 2014, compared to 0.6% increase in the previous quarter.
In the US, the producer price index registered a rise of 1.8%, on an annual basis, in August, in line with market expectations and compared to a rise of 1.7% in the prior month. Additionally, the Redbook sales index in the nation rose 3.6%, on an annual basis, for the week ended 12 September, following a rise of 4.9% in the prior week. Meanwhile, total net TIC inflow in the US stood at $57.7 billion in July, compared to a revised outflow of $142.0 billion reported in the previous month
In the Asian session, at GMT0300, the pair is trading at 1.2954, with the EUR trading marginally higher from yesterday’s close.
The pair is expected to find support at 1.2919, and a fall through could take it to the next support level of 1.2883. The pair is expected to find its first resistance at 1.2993, and a rise through could take it to the next resistance level of 1.3031.
Trading trends in the Euro today are expected to be determined by the Euro-zone’s CPI data, scheduled in a few hours. Meanwhile, investors would keep a close eye on inflation data from the US before the Fed’s interest rate decision, scheduled later in the day
The currency pair is showing convergence with its 20 Hr moving average and trading above its 50 Hr moving average.
