EURUSD Movement
On Friday, the EUR rose 0.44% against the USD and closed at 1.1841.
In economic news, industrial production in Germany surprisingly slid 0.1% on a MoM basis in November compared to a revised advance of 0.6% in the prior month. Market anticipations were for it to climb 0.3%. Additionally, the nation’s trade balance narrowed to €17.9 billion in November, following a revised trade surplus of €22.1 billion in the prior month and compared to market expectations to drop to a level of €20.4 billion. Also, current account surplus unexpectedly dropped to a level of €18.6 billion, lower than market expectations to widen to €23.0 billion. Elsewhere, in France, trade surplus narrowed in November.
In the US, unemployment rate fell to 5.6% in December, its lowest level in 15 years, lower than market expectations to fall to a level of 5.7% and following a reading of 5.8% recorded in the preceding month. Meanwhile, the nation’s non-farm payrolls rose by 252.0 K in December, higher than market anticipations of an advance of 240.0 K. Non-farm payrolls had registered a revised gain of 353.0 K in the previous month. Also, the nation’s wholesale inventories advanced 0.8%, more than market expectations for a rise of 0.3%. It had recorded a revised rise of 0.6% in the previous month.
Meanwhile, average hourly earnings unexpectedly fell 0.2% on a MoM basis in December, compared to a revised advance of 0.2% registered in the prior month.
Separately, the Richmond Fed President, Jeffrey M. Lacker, expressed optimism over the US economy and projected the nation’s GDP to rise by 2.5% to 3.0% in 2015, on the back of rising household spending and an improving labour market conditions.
Following the release of jobs report from the US, Chicago Fed President, Charles Evans stated that even as the labour market in the world’s largest economy showed considerable progress, the inflation and the inflation outlook continued to remain low; hence according to him the central bank should avoid increasing its key rates until 2016.
In the Asian session, at GMT0400, the pair is trading at 1.1856, with the EUR trading 0.13% higher from Friday’s close.
The pair is expected to find support at 1.1789, and a fall through could take it to the next support level of 1.1721. The pair is expected to find its first resistance at 1.1897, and a rise through could take it to the next resistance level of 1.1938.
Trading trends in the pair today are expected to be determined by global macroeconomic news.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
