EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR rose 0.45% against the USD and closed at 1.1660 on Friday.
Data indicated that the Euro-zone’s flash Markit manufacturing PMI dropped to a level of 55.0 in June, in line with expectations. In the prior month, the PMI had recorded a level of 55.5. On the contrary, the region’s preliminary Markit services PMI climbed more than expected to a level of 55.0 in June, compared to a level of 53.8 in the previous month. Market expectations was for the PMI to report an unchanged reading.
Separately, Germany’s flash Markit manufacturing PMI declined to an eighteen-month low level of 55.9 in June, more than market expectations for a fall to a level of 56.2. In the previous month, the PMI had registered a level of 56.9. On the other hand, the nation’s flash Markit services PMI advanced to a 3-month high level of 53.9 in June, after recording a reading of 52.1 in the prior month, while investors had envisaged it to rise to a level of 52.2.
The US Dollar declined against a basket of currencies, following downbeat economic releases in the US.
Data indicated that the flash Markit manufacturing PMI in the US declined to a level of 54.6 in June, more than market expectations for a fall to a level of 56.1. In the previous month, the PMI had registered a level of 56.4. Moreover, the nation’s preliminary Markit services PMI fell to a level of 56.5 in June, at par with market expectations. In the preceding month, the PMI had registered a level of 56.8.
In the Asian session, at GMT0300, the pair is trading at 1.1648, with the EUR trading 0.10% lower against the USD from Friday’s close.
The pair is expected to find support at 1.1608, and a fall through could take it to the next support level of 1.1567. The pair is expected to find its first resistance at 1.1682, and a rise through could take it to the next resistance level of 1.1715.
Moving ahead, investors would look forward to Germany’s IFO survey indices for June, scheduled to release in a few hours. Moreover, the US new home sales data for May followed by the Dallas Fed manufacturing activity index for June, set to release later in the day, will be on investors’ radar.
The currency pair is showing convergence with its 20 Hr moving average and trading above its 50 Hr moving average.
