EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR rose 0.83% against the USD and closed at 1.0729.
The greenback lost ground against most of its key counterparts, following disappointing housing starts and manufacturing production data in the US that supported the notion that the US economy lost momentum in the first quarter of 2017.
Data indicated that housing starts in the US dropped 6.8% on a monthly basis, to an annual rate of 1215.0K in March. Markets expected housing starts to fall to a level of 1250.0K, following a revised level of 1303.0K in the prior month. Additionally, the nation’s manufacturing production registered an unexpected drop of 0.4% in March, dropping for the first time in seven months as auto production dropped sharply. In the previous month, manufacturing production had climbed by a revised 0.3%, while markets were expecting for a flat reading.
On the other hand, the US industrial production rose 0.5% in March, in line with market expectations, driven by a record rebound in utility output. In the prior month, industrial production had recorded a revised rise of 0.1%. Moreover, the nation’s building permits climbed more-than-anticipated by 3.6% MoM, to an annual rate of 1260.0K in March, against market expectations for a rise to a level of 1250.0K and after recording a revised reading of 1216.0K in the prior month.
In the Asian session, at GMT0300, the pair is trading at 1.0720, with the EUR trading 0.08% lower against the USD from yesterday’s close.
The pair is expected to find support at 1.0661, and a fall through could take it to the next support level of 1.0603. The pair is expected to find its first resistance at 1.0757, and a rise through could take it to the next resistance level of 1.0795.
Moving ahead, investors will focus on the Euro-zone’s final consumer price index for March and trade balance data for February, slated to release in a few hours. Additionally, in the US, the Federal Reserve (Fed) Beige Book report and MBA mortgage applications data, will attract a lot of market attention.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
