EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR rose 0.3% against the USD and closed at 1.1113.
Macroeconomic data indicated that Germany’s trade surplus widened to a level of €24.9 billion in June, compared to market expectations of a trade surplus of €23.0 billion and following a trade surplus of €21.0 billion in the previous month. Also, the nation’s imports advanced by 1.0% on a monthly basis in June, more than market expectations for a rise of 0.6% and compared to a revised flat reading in the prior month. Further, exports rose less-than-expected by 0.3% MoM in June, defying market expectations for it to rise by 1.1% and after recording a revised fall of 1.9% in the previous month.
In the US, data revealed that the NFIB small business optimism index unexpectedly edged up to a level of 94.6 in July, while markets expected it to remain steady at a level of 94.5 recorded in the prior month. Moreover, the economic optimism index rose more-than-forecasted to a level of 48.4 in August. The index had recorded a reading of 45.5 in the prior month whereas markets anticipated for a rise to a level of 47.3.
In the Asian session, at GMT0300, the pair is trading at 1.1145, with the EUR trading 0.29% higher against the USD from yesterday’s close.
The pair is expected to find support at 1.1089, and a fall through could take it to the next support level of 1.1034. The pair is expected to find its first resistance at 1.1178, and a rise through could take it to the next resistance level of 1.1212.
Moving ahead, investors would now focus on Q2 GDP figures for Eurozone and Germany as well as Germany’s inflation data, set for release towards the end of the week.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
