EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR rose 0.71% against the USD and closed at 1.0626, on the back of positive CPI data in Germany.
Data showed that consumer prices in Germany rose 0.9% on a monthly basis in February, at par with market expectations and following a drop of 1.1% registered in the previous month.
Other economic data revealed that industrial production in the Euro-zone unexpectedly fell 0.1% MoM in January, after registering a revised rise of 0.3% in the previous month. Market expectations were for it to climb 0.2%.
Meanwhile, the USD came under pressure after the US advance retail sales surprisingly slid 0.6% in February, compared to a drop of 0.8% recorded in January, while markets were expecting it to rise 0.3%. Meanwhile, number of Americans filing for unemployment benefits dropped more than expected to a level of 289.0 K in the week ended 07 March, compared to a revised level of 325.00 K registered in the prior week. Market expectations were for initial jobless claims to ease to 305.0 K.
In other economic news, business inventories in the US remained unchanged MoM in January, similar to a revised flat reading in the previous month. Markets were expecting it to advance 0.10%. Also, the US budget deficit rose to $192.30 billion in February, more than market expectations of a budget deficit of $187.00 billion. In the previous month, the nation had posted a budget deficit of $17.54 billion in the previous month.
In the Asian session, at GMT0400, the pair is trading at 1.0611, with the EUR trading 0.15% lower from yesterday’s close.
The pair is expected to find support at 1.0508, and a fall through could take it to the next support level of 1.0406. The pair is expected to find its first resistance at 1.0698, and a rise through could take it to the next resistance level of 1.0786.
Amid a light economic calendar in the Euro-zone today, trading trends in the Euro are expected to be determined by global macroeconomic news. Meanwhile, the US Michigan consumer confidence data, scheduled later today would generate considerable market attention.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
