EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR declined 0.59% against the USD and closed at 1.1137, after Germany’s seasonally adjusted factory orders fell-more-than expected by 0.7% MoM in December, indicating that the Euro-zone’s biggest economy is losing some steam amid global trade slowdown. Meanwhile markets expected it drop by 0.5%, after recording a gain of 1.5% in the preceding month.
The greenback gained ground, after the US unemployment rate unexpectedly fell to 4.9% in January, hitting its 8-year low level, thus suggesting that the nation’s labour market is recovering firmly. Markets expected it to remain steady at 5.0%. Further, average hourly earnings rose 0.5% MoM in January, after recording a flat reading in the previous month and beating market expectations for a gain of 0.3%.
On the other hand, the nation’s non-farm payrolls rose less-than-expected by 151.0K in January, from a revised reading of 262.0K in the previous month and against investor expectations for a rise of 190.0K.
In other economic news, the US trade deficit widened more-than-anticipated to $43.4 billion in December, as exports fell for a third straight month, compared to market expectations for it to expand to $43.2 billion and following a revised trade deficit of $42.2 billion in the previous month. Additionally, the nation’s consumer credit advanced more-than-expected by $21.3 billion in December, after recording a revised gain of $14.0 billion in the previous month.
In the Asian session, at GMT0400, the pair is trading at 1.1132, with the EUR trading marginally lower from Friday’s close.
The pair is expected to find support at 1.1078, and a fall through could take it to the next support level of 1.1024. The pair is expected to find its first resistance at 1.1216, and a rise through could take it to the next resistance level of 1.1301.
Going forward, investors will keep a close watch on Euro-zone’s Sentix investor confidence and Germany’s industrial production data, scheduled to be released in a few hours.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
