EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR rose 0.24% against the USD and closed at 1.1337.
In economic news, Germany’s final Markit manufacturing PMI unexpectedly recorded a drop to 50.9 in January, compared to a level of 51.0 in the prior month. Meanwhile, the Euro-zone’s Markit manufacturing PMI data remained steady at a level of 51.0 in January, compared to a similar rise recorded in the preceding month.
Elsewhere, in France, manufacturing activity further slipped into contraction territory in January, while manufacturing activity in Italy improved slightly in the same month but remained in contraction territory.
Separately, the ECB Governing Council member, Ewald Nowotny, stated that the ECB has “strong weapons” against inflation but not much against “deflation”. Furthermore, he also indicated that policymakers expect consumer prices in the region to remain very low in 2015 with headline inflation projected to rise 0.8%.
In the US, the ISM manufacturing PMI eased to an 11-month low level of 53.5 in January, lower than market expected drop to a level of 54.5 and compared to a revised reading of 55.1 registered in December. Meanwhile, the nation’s Markit manufacturing PMI unexpectedly advanced to 53.9 in January, against market expectations of an unchanged reading of 53.7 recorded in prior month. Also, personal income registered a rise of 0.3% in December, more than market expectations for a rise of 0.2%. On the other hand, the ISM prices paid index dropped unexpectedly to 35.0 in January, compared to a reading of 38.5 in the prior month. Markets were expecting the ISM prices paid index to advance to a level of 39.8.
In the Asian session, at GMT0400, the pair is trading at 1.1329, with the EUR trading 0.08% lower from Friday’s close.
The pair is expected to find support at 1.1293, and a fall through could take it to the next support level of 1.1257. The pair is expected to find its first resistance at 1.1364, and a rise through could take it to the next resistance level of 1.1399.
The currency pair is trading below its 20 Hr moving average and showing convergence with its 50 Hr moving average.
