EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR rose 0.48% against the USD and closed at 1.1000, after Germany’s Markit construction PMI advanced to a 5-year high level of 59.6 in February, after recording a reading of 57.9 in the preceding month.
In the US, unemployment rate remained steady at an eight-year low level of 4.9% in February, in line with market expectations. Additionally, the nation’s non-farm payrolls rose by 242.0K in February, compared to a revised gain of 172.0K in the previous month and beating market expectations for an advance of 195.0K, thus suggesting some room for the US Federal Reserve to hike interest rates gradually this year. On the other hand, the nation’s average hourly earnings unexpectedly dropped for the first time since December 2015 by 0.1% MoM in February, compared to a gain of 0.5% in the preceding month. Markets expected it to advance by 0.2%. Further, the trade deficit in the US surprisingly widened to a level of $45.68 billion in January, from a downwardly revised deficit of $44.70 billion in the preceding month and compared to market expectations for a fall to a level of $44.00 billion.
In the Asian session, at GMT0400, the pair is trading at 1.0991, with the EUR trading 0.08% lower from Friday’s close.
The pair is expected to find support at 1.0915, and a fall through could take it to the next support level of 1.0839. The pair is expected to find its first resistance at 1.1055, and a rise through could take it to the next resistance level of 1.1120.
Moving ahead, investors will look forward to the Euro-zone’s Sentix investor confidence data for March, slated to be released in a few hours. Additionally, the US consumer credit change and labour market conditions index data, scheduled to be released later in the day, will also attract a lot of market attention.
The currency pair is showing convergence with its 20 Hr moving average and trading above its 50 Hr moving average.
