EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR declined 1.32% against the USD and closed at 1.1633.
Yesterday, data showed that Germany’s non-seasonally adjusted GDP climbed 1.5% on a YoY basis, meeting market expectations. The nation’s GDP had registered a rise of 0.1% in the prior year. Meanwhile, the Euro-zone’s seasonally adjusted trade surplus increased to €20.0 billion in November, from previous month’s revised reading of €19.6 billion.
In the US, number of people claiming initial jobless benefits unexpectedly rose to 4-month high level of 316.00 K in the week ended 10 January 2015, compared to a revised level of 297.00 K in the prior week. Market expectations were for it to fall to a level of 290.00 K. Meanwhile, the NY Empire State manufacturing index advanced to 9.95 in January, compared to market expectations of a rise to 5.00 and compared to a revised reading of -1.23 recorded in the previous month. Also, the producer price index fell 0.30% on a MoM basis, less than market expectations for a fall of 0.4%. In the previous month, producer price index had fallen 0.2%.
Elsewhere, the Boston Fed President, Eric Rosengren opined that he was not confident about the US moving towards its 2% inflation target and hence urged the central bank to remain patient regarding an interest rate hike in the nation.
In the Asian session, at GMT0400, the pair is trading at 1.1638, with the EUR trading a tad higher from yesterday’s close.
The pair is expected to find support at 1.1541, and a fall through could take it to the next support level of 1.1444. The pair is expected to find its first resistance at 1.1762, and a rise through could take it to the next resistance level of 1.1885.
Trading trends in the Euro today are expected to be determined by the Euro-zone’s as well as Germany’s inflation data, scheduled in few hours. Meanwhile, investors would also keep a close on the US CPI coupled with Michigan confidence data, scheduled later today.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
