EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR rose 0.51% against the USD and closed at 1.2380, following positive trade surplus and current account data in Germany, the Euro-zone’s biggest economy.
Yesterday, data showed that Germany’s trade surplus unexpectedly expanded to €21.9 billion in October, higher than market expectations for a surplus of €18.5 billion and compared to a revised trade surplus of €22.1 billion in the previous month. Additionally, the nation’s current account surplus surprisingly advanced to €23.1 billion in October, beating market expectations for the nation to register a surplus of €18.0 billion.
Elsewhere, in France, trade deficit fell to €4.61 billion in October, less than market expectations of a trade deficit of €4.90 billion and compared to a revised trade deficit of €4.72 billion in the prior month.
Separately, the ECB Governing Council member, Jozef Makuch, revealed that, at their meeting last week, an “overwhelming majority” of policymakers remained in favour of buying sovereign bonds in order to support the Euro-zone economy.
In the US, the NFIB small business optimism index registered a rise to a level of 98.1, higher than market expectations of an advance to 96.5. In the prior month, the index had registered a reading of 96.10. Similarly, JOLTs job openings in the nation registered a rise to 4834.0 K in October, compared to market expectations of a rise to a level of 4770.0 K.
Other economic data indicated that the US economic optimism index rose to a level of 48.4 in December, following a reading of 46.4 in November. Meanwhile, the seasonally adjusted wholesale inventories climbed 0.4% on a MoM basis, compared to a revised similar rise recorded in the prior month. Markets were expecting the wholesale inventories to rise 0.20%.
In the Asian session, at GMT0400, the pair is trading at 1.2382, with the EUR trading a tad higher from yesterday’s close.
The pair is expected to find support at 1.2300, and a fall through could take it to the next support level of 1.2218. The pair is expected to find its first resistance at 1.2456, and a rise through could take it to the next resistance level of 1.2530.
Amid a light economic calendar in the Euro-zone today, investor sentiment would be governed by global macroeconomic news.
The currency pair is trading between its 20 Hr and 50 Hr moving averages.
