EURUSD Movement
On Friday, EUR declined 0.33% against the USD and closed at 1.3139, after the recent batch of soft data from the Euro-zone increased speculations that the ECB might introduce additional stimulus measures in the region’s economy.
In economic news, the flash consumer price index in the Euro-zone registered a rise of 0.3% in August, on an annual basis, inline with market expectations and compared to a rise of 0.4% in the previous month. Meanwhile, the unemployment rate remained flat at a level of 11.5% in July, in line with market expectations of a similar reading in the prior month. On the other hand, in Germany, Euro-zone’s biggest economy, the retail sales unexpectedly fell 1.4% in July, on a M-o-M basis, lower than market expectations for an advance of 0.1% and compared to a rise of 1.0% in the previous month.
Elsewhere, Italian unemployment rate surprisingly climbed in July. Additionally Italy’s GDP fell 0.2% on a quarterly basis.
In the US, the consumer sentiment index rose unexpectedly to a level of 82.5 in July, marking its 7-year high level and compared to a revised reading of 79.2 in the prior month. Market anticipations for the consumer sentiment index were to ease to a level of 80.0.
Additionally, the core personal consumption expenditure in the US rose 0.1% on a monthly basis in July, in line with market expectations. However, the personal spending unexpectedly eased 0.1% in July on a monthly basis, compared to a rise of 0.4% in the prior month. Also, the personal income advanced 0.2% in July, on a M-o-M basis, lesser than market expectations for an advance of 0.3%. Separately, the Chicago Fed purchasing managers’ index climbed to 64.3 in August, beating market expectations of a rise to a level of 56.0 and compared to a reading of 52.6 registered in the previous month.
In the Asian session, at GMT0300, the pair is trading at 1.3123, with the EUR trading 0.12% lower from Friday’s close.
The pair is expected to find support at 1.3096, and a fall through could take it to the next support level of 1.3068. The pair is expected to find its first resistance at 1.3174, and a rise through could take it to the next resistance level of 1.3224.
Trading trends in the Euro today are expected to be determined by the much crucial German GDP, scheduled in a few hours.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
