EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR declined 0.91% against the USD and closed at 1.0840, after Germany’s retail sales ended 2015 on a weak note
Data showed that German retail sales unexpectedly declined by 0.2% MoM in December, after recording a revised gain of 0.4% in the preceding month. On the other hand, the Euro-zone’s flash consumer price index advanced for the second straight month, after it rose by 0.4% YoY in January, in line with market expectations, up from an increase of 0.2% in the preceding month.
In the US, preliminary annual GDP growth advanced less than expected by 0.7% in the last quarter of 2015 while markets expected it to expand by 0.8% and following a 2.0% rise in the previous quarter, thereby suggesting that the fed was too quick to hike interest rate last month. Additionally, the nation’s advance goods trade deficit widened to $61.5 billion in December, from $60.3 billion in the preceding month. Also, the nation’s final Michigan confidence index declined more than expected to a level of 92.0 in January, compared to market expectations for a fall to a level of 93.0 and following a revised reading of 93.3 in the previous month. On the other hand, the nation’s Chicago purchasing managers’ index rose more than expected to a level of 55.6 in January, from a reading of 42.9 in the previous month and beating market consensus of an increase to a level of 45.9.
In the Asian session, at GMT0400, the pair is trading at 1.0848, with the EUR trading 0.07% higher from Friday’s close.
The pair is expected to find support at 1.0789, and a fall through could take it to the next support level of 1.073. The pair is expected to find its first resistance at 1.0928, and a rise through could take it to the next resistance level of 1.1008.
Going ahead, investors await the release of final Markit manufacturing PMI data across the Euro-zone, slated to release in a few hours. Additionally, the release of US ISM manufacturing PMI and construction spending data, later today, will keep investors on their toes.
The currency pair is showing convergence with its 20 Hr and trading below its 50 Hr moving average.
