EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR declined 0.06% against the USD and closed at 1.1382, following the release of disappointing economic data in the Euro-zone.
Data showed that Euro-zone’s final Markit services PMI surprisingly declined to a level of 53.1 in March, compared to market expectations of it to remain steady at the preliminary reading of 54.0. Meanwhile, in Germany, the final services PMI unexpectedly eased to a level of 55.1 in March, compared to market expectations of an advance to 55.5. In the previous month, the services PMI had recorded a reading of 55.3. The preliminary figure had recorded an advance to 55.5. Moreover, the nation’s seasonally adjusted factory orders surprisingly fell to a six-month low level of 1.2% MoM in February, compared to a revised rise of 0.5% in the previous month. Market anticipation was for factory orders to climb 0.3%. On the other hand, Euro-zone’s retail sales rose 0.2% MoM, climbing for the fourth straight month in February, compared to market expectations for a steady reading. In the prior month, retail sales had recorded a revised rise of 0.3%.
In the US, the final Markit services PMI rose to a level of 51.3 in March. Markets were expecting services PMI to advance to a level of 51.2. The preliminary figure had indicated an advance to 51.0. Moreover, the ISM non-manufacturing PMI registered a rise to 54.5 in March, compared to investor expectations of an advance to a level of 54.1. In the prior month, the non-manufacturing PMI had recorded a reading of 53.4. In contrast, US trade deficit widened to a six-month high level of $47.1 billion in February, compared to market expectations of a trade deficit of $46.2 billion. The US had reported a revised trade deficit of $45.9 billion in the previous month. Additionally, the nation’s JOLTs job openings registered a drop to 5445.0K in February, compared to a revised reading of 5604.0K in the previous month.
In the Asian session, at GMT0300, the pair is trading at 1.1375, with the EUR trading 0.06% lower from yesterday’s close.
The pair is expected to find support at 1.1339, and a fall through could take it to the next support level of 1.1303. The pair is expected to find its first resistance at 1.1406, and a rise through could take it to the next resistance level of 1.1437.
Moving ahead, investors will look forward to Germany’s industrial production and construction PMI data, scheduled to release in a few hours. Additionally, in the US, the FOMC 15-16 March meeting minutes, due later today, will attract a lot of market attention.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
