EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR rose 0.23% against the USD and closed at 1.1353.
In economic news, Germany’s seasonally adjusted unemployment rate held steady at an all-time low level of 6.2% in April, in line with market expectations, despite large influx of refugees. . Additionally, the number of unemployed people recorded an unexpected drop of 16.0K in April, falling for the seventh consecutive month, compared to a revised drop of 2.0K in the previous month. Market anticipation was for the number of people unemployed to remain flat.
On the other hand, Germany’s preliminary consumer price index (CPI) registered a drop of 0.2% MoM in April, in line with market expectations, following a 0.8% rise in the previous month.
Meanwhile, in the Euro-zone, the final consumer confidence index rose in line with investor expectations to a level of -9.3 in April, compared to a reading of -9.7 in the previous month. The preliminary figure had also recorded an advance to -9.3. Moreover, the region’s economic confidence index advanced above expectations after falling for three consecutive months, to a level of 103.9 in April, suggesting that the Euro-zone’s modest recovery is likely to be sustained over the coming months. Markets were expecting it to climb to a level of 103.4, following a reading of 103.0 in the previous month.
The greenback lost ground, after the US preliminary annualized GDP advanced less-than-expected to its slowest pace in two years by 0.5% in 1Q 2016, compared to market expectations for an advance of 0.7%. It had registered a rise of 1.4% in the previous quarter. Almost all sectors of the economy weakened in the first quarter, with the housing market being the lone star.
In other economic news, the seasonally adjusted initial jobless claims in the US rose to a level of 257.0K in the week ended 23 April 2016, compared to market expectations of a rise to 260.0K. In the previous week, initial jobless claims had recorded a reading of 247.0K. On the other hand, the Kansas City Fed manufacturing activity index recorded a rise to -4.0 in April, following a reading of -6.0 in the prior month.
In the Asian session, at GMT0300, the pair is trading at 1.1379, with the EUR trading 0.23% higher from yesterday’s close.
The pair is expected to find support at 1.1320, and a fall through could take it to the next support level of 1.1262. The pair is expected to find its first resistance at 1.1412, and a rise through could take it to the next resistance level of 1.1446.
Going ahead, investors will look forward to the Euro-zone’s preliminary consumer price index and unemployment rate data along with Germany’s retail sales data for March, scheduled to release in a few hours. Additionally, the US personal spending and the Reuters/Michigan consumer sentiment index, due later today, will also attract market attention.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
