EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR rose 0.39% against the USD and closed at 1.1334, after Germany’s inflation edged higher. The preliminary consumer price index advanced above expectations by 0.8% MoM in March, decreasing the chances of further monetary easing by the ECB. Investors had expected it to rise by 0.6% after it had recorded a rise of 0.4% in the previous month.
In other economic news, the Euro-zone’s final consumer confidence index remained steady at a level of -9.7 in March, its lowest level since December 2014. The preliminary figure had also indicated a drop to -9.7. Moreover, the region’s economic sentiment indicator fell for the third consecutive month to a level of 103.0 in March, its lowest level in more than a year, after registering a revised reading of 103.9 in the previous month. On the other hand, the business climate indicator surprisingly rose to a level of 0.11 in March, compared to a revised level of 0.09 in the prior month. Market expectation was for the indicator to fall to a level of 0.08.
In the US, private sector employment climbed by 200.0K in March, compared to a revised increase of 205.0K in the prior month. Markets were expecting it to advance by 195.0K. In contrast, the nation’s mortgage applications slid 1.0% in the week ended 25 March 2016, following a drop of 3.3% in the previous week.
In the Asian session, at GMT0300, the pair is trading at 1.1315, with the EUR trading 0.17% lower from yesterday’s close.
The pair is expected to find support at 1.1278, and a fall through could take it to the next support level of 1.1242. The pair is expected to find its first resistance at 1.1358, and a rise through could take it to the next resistance level of 1.1402.
Going ahead, investors will look forward to the Euro-zone preliminary consumer price index data for March, along with Germany’s retail sales and unemployment rate data, scheduled to release in a few hours. Moreover, the US weekly initial jobless claims data, due later today, will also attract market attention.
The currency pair is showing convergence with its 20 Hr moving average and is trading above its 50 Hr moving average.
