EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR declined 0.84% against the USD and closed at 1.0740.
In economic news, Germany’s unemployment rate surprisingly hit a record low of 6.4% in March since 1990, compared to a reading of 6.5% in the previous month. Meanwhile, the nation’s retail sales retreated 0.5% MoM in February, lower than market expected drop of 0.7% and following a revised advance of 2.3% in January.
Other economic data showed that unemployment rate in the Euro-zone eased to 11.30% in February, compared to market expectations of a drop to 11.20%. The unemployment rate had registered a revised reading of 11.40% in the previous month. Also, core consumer prices in the single-currency region rose 0.6% YoY in March, lower than market expected advance of 0.7% and following a similar gain registered in February.
The greenback traded on a stronger footing, after the US CB consumer confidence index climbed unexpectedly to a level of 101.30 in March, compared to market expectations of a drop to a level of 96.40. The index had registered a revised reading of 98.80 in the previous month.
Separately, the Richmond Fed President, Jeffrey Lacker, opined that interest rates in the US should be raised in June amid a robust pace of growth in the labour market and as the nation’s inflation rises towards the Fed’s target.
In the Asian session, at GMT0300, the pair is trading at 1.0778, with the EUR trading 0.35% higher from yesterday’s close.
The pair is expected to find support at 1.0716, and a fall through could take it to the next support level of 1.0653. The pair is expected to find its first resistance at 1.0838, and a rise through could take it to the next resistance level of 1.0897.
Trading trends in the pair today are expected to be determined by the manufacturing PMI data from the Euro-zone and its peripheries, scheduled in a few hours. Meanwhile, the US ISM manufacturing PMI data would generate lot of market attention, scheduled later today.
The currency pair is trading between its 20 Hr and 50 Hr moving averages.
