EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR rose 0.48% against the USD and closed at 1.1184, after the ECB pushed back expectations of an immediate injection of extra stimulus in the Euro-economy.
Yesterday, the ECB President, Mario Draghi, mentioned that the central bank needs more time to assess whether the loss of momentum in emerging markets was of temporary or permanent nature. However, the Chief was quick to add that the ECB stands ready to ramp its bond-buying programme, if the Euro-zone’s inflation weakens more than anticipated.
In other economic news, the preliminary estimate of Germany’s manufacturing PMI advanced less than anticipated to a level of 52.5 in September, from 53.3 in August. Additionally, the nation’s services PMI also dropped to 54.3 in September, compared to previous month’s reading of 54.9.
In other economic news, the Euro-zone’s services as well as manufacturing PMI figures came in lower than market forecasts in the month of September.
Elsewhere, the final estimate showed that the French economy stagnated on a quarterly basis in the second quarter of 2015.
In the US, data revealed that the manufacturing PMI remained unchanged at a level of 53.0 in September, against market expectations of a drop to 52.8.
In the Asian session, at GMT0300, the pair is trading at 1.1185, with the EUR trading marginally higher from yesterday’s close.
The pair is expected to find support at 1.1123, and a fall through could take it to the next support level of 1.1062. The pair is expected to find its first resistance at 1.1230, and a rise through could take it to the next resistance level of 1.1275.
Trading trends in the Euro today are expected to be determined by Germany’s IFO economic survey data, scheduled in a few hours. Additionally, the US durable goods orders and initial jobless claims data, scheduled later today, would also grab lot of market attention.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
