EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR declined 0.77% against the USD and closed at 1.1059.
In economic news, the Euro zone’s retail sales rose in line with investor expectations by 0.4% MoM in May, recording this year’s highest monthly increase, driven by a robust growth in non-food sales. Retail sales had advanced by a revised 0.2% in the prior month. Additionally, the region’s final Markit services PMI rose to a level of 52.8 in June, from a preliminary reading of 52.4. Meanwhile in Germany, final services PMI surprisingly advanced to a level of 53.7 in June, while investors expected it to remain steady at the flash reading of 53.2.
The greenback posted gains after Brexit fears continued to weigh on risk appetite amongst investors.
On the economic front, US factory orders fell more-than-expected by 1.0% in May, led by weak demand for transportation and defence capital goods. In the previous month, factory orders had climbed by a revised 1.8%. Further, the nation’s final durable goods orders dropped 2.3% in May, compared to a revised advance of 3.3% in the prior month. The preliminary figures had recorded a drop of 2.2%. Moreover, the US IBD/TIPP economic optimism index unexpectedly declined to a level of 45.5 in July, compared to market expectations of it to remain steady at a level of 48.2.
In the Asian session, at GMT0300, the pair is trading at 1.1037, with the EUR trading 0.2% lower against the USD from yesterday’s close, extending its previous session losses.
The pair is expected to find support at 1.0986, and a fall through could take it to the next support level of 1.0934. The pair is expected to find its first resistance at 1.1136, and a rise through could take it to the next resistance level of 1.1234.
Moving ahead, investors will look forward to Germany’s factory orders data for May and the European Central Bank (ECB) President, Mario Draghi’s speech, scheduled in a few hours. Additionally, the US FOMC June meeting minutes, due later today, will attract a significant amount of market attention.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
