EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR declined 0.39% against the USD and closed at 1.1146.
In economic news, the final manufacturing PMI in Germany fell to 52.10 in April, compared to a 11-month high reading of 52.80 in the prior month. Also, the Euro-zone’s manufacturing PMI registered a drop to 52.00 in April, compared to a reading of 52.20 in the previous month. Market anticipation was for the manufacturing PMI to ease to a level of 51.90.
Other economic data showed that the Sentix investor confidence index in the Euro-zone eased to 19.60 in May, after registering its highest level of 20.0 since August 2007 in April.
The greenback traded on a stronger footing, after the US factory orders rebounded more than expected by 2.1% MoM in March, notching its first rise in 8 months and compared to previous month’s 0.1% drop.
Separately, the Chicago Fed President, Charles Evans reiterated his call to keep borrowing rates near zero until 2016 and further stated that the nation’s economic activity appears to be on a sustainable growth trajectory, albeit the weak first quarter data did affect his confidence on a rate hike.
On Friday, data revealed that the US ISM manufacturing activity index remained steady at a level of 51.50 in April, lower than market expectations of an advance to 52.00.
In the Asian session, at GMT0300, the pair is trading at 1.1140, with the EUR trading 0.06% lower from yesterday’s close.
The pair is expected to find support at 1.1100, and a fall through could take it to the next support level of 1.1060. The pair is expected to find its first resistance at 1.1202, and a rise through could take it to the next resistance level of 1.1265.
Trading trends in the Euro today are expected to be determined by the European Commission economic growth forecast, scheduled in a few hours. Meanwhile, the US non-manufacturing PMI data, scheduled later today would also generate lot of market attention.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
