EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR rose 0.53% against the USD and closed at 1.2510, following upbeat economic data from the Euro-zone and Germany.
Yesterday, data indicated that Germany’s ZEW economic sentiment index improved for the second-consecutive month to 34.9 in December, beating market expectations of a rise to a level of 20.0. In the prior month, the index had recorded a reading of 11.5. Additionally, the nation’s current situation index registered a rise to 10.0, compared to market expectations of an advance to 5.0, thus easing concerns over the economic outlook for the Euro-zone’s biggest economy. Meanwhile, the Euro-zone’s ZEW economic sentiment index climbed to a level of 31.8, from previous month’s mark of 11.0.
The Euro was further boosted, after manufacturing PMI in Germany advanced more than anticipated to 51.2 in December, against market expectations of a rise to a level of 50.3. The index had registered a level of 49.5 in the prior month. Also, the manufacturing PMI in the Euro-zone increased to 50.8 in December, higher than market expectations of a rise to a level of 50.5, while the region’s services PMI edged up to 51.9 in December and compared to prior month’s reading of 51.5.
Elsewhere, in France, manufacturing as well as services PMI remained in the contraction territory in November respectively.
In other economic news, the common-currency region’s seasonally adjusted trade surplus expanded more than expected to €19.4 billion, following a trade surplus of €17.7 billion. Markets were expecting it to increase to €18.2 billion.
The greenback lost ground after the US Markit manufacturing PMI unexpectedly fell to 11-month low level of 53.7 in December, lower than market expectations of a rise to a reading of 55.5. Additionally, the nation’s building permits eased more than forecasted 5.2% on a MoM basis in November, following a revised rise of 5.9% recorded in October and against market expectations for a 2.5% drop. Also, housing starts surprisingly eased 1.6% on a monthly basis in November, compared to market expected 3.1% gain.
In the Asian session, at GMT0400, the pair is trading at 1.2494, with the EUR trading 0.12% lower from yesterday’s close.
The pair is expected to find support at 1.2433, and a fall through could take it to the next support level of 1.2371. The pair is expected to find its first resistance at 1.2564, and a rise through could take it to the next resistance level of 1.2633.
Trading trends in the Euro today are expected to be determined by the Euro-zone’s final CPI reading, set for release in a few hours. Additionally, investors would keep a close eye on the Fed’s interest decision along with the US inflation data, scheduled later today.
The currency pair is trading between its 20 Hr and 50 Hr moving averages.
