EURUSD Movement
For the 24 hours to 23:00 GMT, EUR declined 0.21% against the USD and closed at 1.3488. The US Dollar gained ground as an unexpected decline in the domestic weekly jobless claim spurred fresh speculation that the Fed might taper its asset purchase programme in its upcoming October policy meeting.
In the US, official data confirmed that weekly jobless claim declined to a level of 305,000 for the week ended September 20, 2013, defying market expectation for a rise to 325,000 from a reading of 310,000 registered in the earlier week. Another report showed that the nation’s annualised Gross Domestic Product (GDP) grew 2.5% in the second quarter, less than analysts’ call for a rise to 2.6% and following a 1.1% growth seen in the preceding quarter. Additionally, the US personal consumption expenditures prices fell 0.1% (QoQ) during the second quarter, defying market expectation to remain unchanged at previous quarter’s level of 0.0%. Also the US pending home sales registered a fall of 1.6% (MoM) in August, more than the consensus for a 1.0% fall and compared to a 1.4% drop registered in the previous month.
Elsewhere in the Euro-zone, official data revealed that M3 money supply in the region rose 2.3% (YoY) in August, surpassing analysts’ expectation for a 2.2% rise. Meanwhile, private loans in the region declined 2.0% (YoY) in August, at par with market expectation and following a 1.9% fall seen in the previous month.
In the Asian session, at GMT0300, the pair is trading at 1.3480, with the EUR trading 0.06% lower from yesterday’s close.
The pair is expected to find support at 1.3458, and a fall through could take it to the next support level of 1.3436. The pair is expected to find its first resistance at 1.3515, and a rise through could take it to the next resistance level of 1.3550.
Trading trends in the Euro is expected to be determined by the European Central Bank (ECB) President, Mario Draghi’s speech and Euro-zone’s economic sentiment data, due later today.
The currency pair is showing convergence with its 20 Hr moving average and is trading just below its 50 Hr moving average.
