EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR rose 0.42% against the USD and closed at 1.1089.
In economic news, the Euro-zone’s producer price index remained flat on a monthly basis in May, compared to a fall of 0.10% in the prior month, while markets were expecting it to rise 0.10%.
The greenback came under pressure, as the US non-farm pay rolls report showed that the US economy added fewer jobs than anticipated in June.
Data revealed that the US non-farm payrolls climbed by 223.00 K in June, lower than market anticipations of an advance of 230.00 K. Non-farm payrolls had registered a revised increase of 254.00 K in the previous month. Additionally, number of Americans filing for unemployment benefits for the first time unexpectedly rose to a level of 281.00 K in the week ended 27 June 2015, compared to a level of 271.00 K in the previous week, while Markets were expecting initial jobless claims to ease to 270.00 K.
On the other hand, unemployment rate in the US slid to 5.3%, notching its lowest mark in seven years in the month of June, after inching up to 5.5% in May.
Other economic data indicated that the US factory orders eased more than expected by 1.0%, registering a 9th fall in ten months in May and following a 0.7% drop in April.
In the Asian session, at GMT0300, the pair is trading at 1.1094, with the EUR trading a tad higher from yesterday’s close.
The pair is expected to find support at 1.1054, and a fall through could take it to the next support level of 1.1014. The pair is expected to find its first resistance at 1.1128, and a rise through could take it to the next resistance level of 1.1162.
Trading trends in the Euro today would be governed by the release of the Euro-zone’s as well as its peripheries services PMI data, scheduled in a few hours. Meanwhile, main focus would be on the outcome of the Greek referendum scheduled on 05 July which will determine the direction of the currency pair. Meanwhile, trading will remain mild in the US today on account of the nation’s Independence Day observation holiday.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
