EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR rose 1.16% against the USD and closed at 1.1020, following hawkish comments from a European policymaker.
ECB member, Ewald Nowotny stated that the financial community had “exaggerated expectations” of what action the ECB would take at its 03 December policy meeting. He further mentioned that the central bank’s recent expansion of its accommodative policy measures was “correct” as the Euro-zone inflation still remains “clearly below” the bank’s target of 2.0%.
In other economic news, Germany’s trade surplus narrowed in October, while the nation’s exports and imports fell more-than-expected during the same month, due to a sharp drop in demand from slowing economies like China and Russia, thus exerting pressure on the Eurozone’s largest economy.
Data showed that German trade surplus fell to €22.5 billion in October, more than market expectations of a fall to a level of €21.7 billion, following a revised trade surplus of €22.8 billion in the previous month. The nation’s imports recorded a drop of 3.4%, whereas exports declined 1.2%, both on a monthly basis in October.
In the US, wholesale inventories surprisingly declined 0.1% in October, against market expectations for an advance of 0.2%. In the prior month, it had recorded a revised rise of 0.2%. On the other hand, the nation’s MBA mortgage applications rose 1.2% in the week ended 04 December, after falling by 0.2% in the previous week.
In the Asian session, at GMT0400, the pair is trading at 1.1006, with the EUR trading 0.13% lower from yesterday’s close.
The pair is expected to find support at 1.0924, and a fall through could take it to the next support level of 1.0843. The pair is expected to find its first resistance at 1.1065, and a rise through could take it to the next resistance level of 1.1125.
Moving ahead, investors will look forward to the US initial jobless claims data, scheduled later today.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
