EURUSD Movement
On Friday, EUR declined 0.70% against the USD and closed at 1.2293.
In economic news, the Euro-zone’s seasonally adjusted second estimate of GDP expanded 0.2% on a QoQ basis in 3Q 2014, in line with market expectations and compared to a similar rise recorded in the previous quarter. Meanwhile, German factory orders advanced 2.5% on a monthly basis in October, beating market expectations for a rise of 0.5%, following a revised climb of 1.1% recorded in September.
Elsewhere, in Spain, industrial output rose 1.2% on an annual basis in October, following an advance of 1.0% in the prior month.
The greenback traded on a stronger footing, following upbeat non-farm payrolls data in the US.
Non-farm pay rolls recorded an increase of 321.0 K in November, higher than market expectations of an advance of 230.0 K and compared to prior month’s revised gain of 243.0 K. Additionally, the US unemployment rate remained steady at 5.8% in November, in line with market expectations for it to remain unchanged. On the other hand, the nation’s factory orders unexpectedly fell 0.7% on a MoM basis in October, lower than market expectations for a steady reading. Factory orders had eased by a revised 0.5% fall in September. Moreover, the nation’s consumer credit climbed less than expected to $13.23 billion in October, against market expectations of $16.5 billion and after registering a revised level of $15.4 billion in September. Meanwhile, the US trade deficit narrowed to $43.4 billion in October, less than market expectations of a deficit of $41.2 billion, following a revised trade deficit of $43.60 billion recorded in the previous month.
Separately, the Cleveland Fed President Loretta Mester sounded optimistic about the US economy and further added that she expects to see a rate hike sometime next year.
In the Asian session, at GMT0400, the pair is trading at 1.2286, with the EUR trading 0.06% lower from Friday’s close.
The pair is expected to find support at 1.2243, and a fall through could take it to the next support level of 1.2200. The pair is expected to find its first resistance at 1.2357, and a rise through could take it to the next resistance level of 1.2428.
Trading trends in the Euro today are expected to be determined by Germany’s industrial production data, set for release in a few hours.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
