EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR rose 0.19% against the USD and closed at 1.0697 on Friday.
On the data front, Germany’s import price index climbed 1.9% on a monthly basis in December, compared to an advance of 0.7% in the prior month, while markets were expecting the index to rise 1.3%.
Macroeconomic data indicated that the US flash annualised gross domestic product (GDP) expanded less-than-expected by 1.9% QoQ in 4Q 2016, pressured by a wider trade deficit. Meanwhile, markets expected the nation’s GDP to advance 2.2%, following a rise of 3.5% in the prior quarter. Additionally, the nation’s preliminary durable goods orders unexpectedly dropped 0.4% in December, dragged by a steep drop in demand for defence-related goods. Markets anticipated durable goods orders to gain 2.5%, following a decline of 4.5% in the previous month. On the other hand, the nation’s final Reuters/Michigan consumer sentiment index surprisingly jumped to a level of 98.5 in January, surging to a 13-year high level, as consumers remained more optimistic about the nation’s economy and job growth. Investors had envisaged the index to remain steady at a level of 98.1, recorded in the preliminary print and after registering a reading of 98.2 in the previous month.
In the Asian session, at GMT0400, the pair is trading at 1.0730, with the EUR trading 0.31% higher against the USD from Friday’s close.
The pair is expected to find support at 1.0677, and a fall through could take it to the next support level of 1.0625. The pair is expected to find its first resistance at 1.0761, and a rise through could take it to the next resistance level of 1.0793.
Trading trend in the Euro today is expected to be determined by Germany’s flash consumer price index for January, scheduled to release later in the day. Also, the Euro-zone’s final consumer confidence index for January, due to release in a few hours, will be keenly watched by investors. Elsewhere, in the US, traders will eye pending home sales, personal income and spending data, all for December, scheduled to release later in the day.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
