EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR declined 0.19% against the USD and closed at 1.1218, following the release of mixed economic data across the Euro-zone.
Data showed that the Eurozone’s preliminary manufacturing PMI rose to a level of 51.4 in March, in line with market expectations and after registering a reading of 51.2 in the previous month. On the other hand, the region’s ZEW economic sentiment index dropped to a 15-month low level of 10.6 in March, from a reading of 13.6 in the previous month.
Elsewhere, in Germany, the manufacturing PMI unexpectedly declined to a level of 50.4 in March, its lowest reading since November 2014, compared to market expectations of a rise to a level of 50.8. In the previous month, it had recorded a reading of 50.5. Additionally, the nation’s ZEW economic sentiment index advanced less-than-expected to a reading of 4.3 in March, from a level of 1.0 in the previous month and compared to market expectations of a rise to a level of 5.9. In contrast, the nation’s Ifo business climate index rose to a level of 106.7 in March, from a reading of 105.7 in the previous month.
In the US, the flash Markit manufacturing PMI rose less-than-expected to a level of 51.4 in March, compared to market expectations of a rise to 51.9. In the prior month, it had registered a reading of 51.3. On the other hand, the nation’s house price index advanced in line with market expectations by 0.5% MoM in January, compared to a rise of 0.4% in the previous month.
Separately, the Chicago Fed President, Charles Evans, backed two interest rate hikes this year. Further, he expects 2-2.5% economic growth and unemployment to fall to 4.75% by the end of this year.
In the Asian session, at GMT0400, the pair is trading at 1.121, with the EUR trading 0.08% lower from yesterday’s close.
The pair is expected to find support at 1.1178, and a fall through could take it to the next support level of 1.1147. The pair is expected to find its first resistance at 1.1252, and a rise through could take it to the next resistance level of 1.1294.
Moving ahead, investors look forward to the US MBA mortgage applications and new home sales data, due later today.
The currency pair is showing convergence with its 20 Hr moving average and is trading below its 50 Hr moving average.
