EURUSD Movement
On Friday, the EUR rose 1.25% against the USD and closed at 1.1370, after Euro-zone’s consumer confidence slightly improved in August, its first increase in five months. Compared to a reading of -7.10 in July, the preliminary consumer confidence index in the Eurozone climbed to -6.80 in August. Markets were expecting the index to climb to -6.90 in this month. Meanwhile, Eurozone’s flash August PMI data presented a mixed picture about the region’s economy as the manufacturing PMI remained flat, while the services PMI hit a two-month high. On the other hand, the manufacturing PMI of France slipped further into contraction territory, while Germany’s factory activity grew at the fastest rate since April 2014. The services activity of Germany and France slipped in August. Meanwhile, Germany’s Gfk consumer confidence index unexpectedly fell to a level of 9.9 in September from August.
Elsewhere, in the US, the flash manufacturing PMI came in at 52.9 in July 2015, its lowest since October 2013.
In the Asian session, at GMT0300, the pair is trading at 1.1491, with the EUR trading 1.07% higher from Friday’s close.
The pair is expected to find support at 1.1322, and a fall through could take it to the next support level of 1.1153. The pair is expected to find its first resistance at 1.1578, and a rise through could take it to the next resistance level of 1.1665.
Amid a lack of any major economic news from the bloc, market participants would shift their focus on Tuesday’s German GDP numbers for Q2.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
