EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR declined 0.31% against the USD and closed at 1.1302.
On the macro front, Euro-zone’s seasonally adjusted retail sales advanced at its fastest pace in three months by 2.2% on an annual basis in January, driven by robust internet sales and beating market expectations for a rise of 2.1%. In the prior month, retail sales recorded a revised gain of 0.3% in the previous month. Additionally, the final services PMI climbed to a level of 52.8 in February, notching its highest level in three months and surpassing market expectations for a rise to a level of 52.3. In the previous month, the services PMI had recorded a level of 51.2. The preliminary figures had indicated an advance to 52.3.
Separately, in Germany, the final services PMI advanced to a 5-month high level of 55.3 in February, overshooting market forecast for a rise to 55.1 and compared to a level of 53.0 in the previous month. The preliminary figures had indicated a rise to 55.1.
The US Dollar rose against its major peers yesterday, on the back of upbeat US economic data.
Data showed that the US ISM non-manufacturing index climbed to 59.7 in February, more than market forecast for an increase to 57.3. The index had registered a reading of 56.7 in the previous month. Moreover, new home sales unexpectedly rose 3.7% to a level of 621.0K on a monthly basis in December, compared to a revised reading of 599.0K in the previous month. Meanwhile, the final Markit services PMI rose to 56.0 in February, compared to market expectations of a rise to a level of 56.2. The preliminary figures had recorded an advance to 56.2. In the previous month, the services PMI had recorded a revised reading of 54.2.
In the Asian session, at GMT0400, the pair is trading at 1.1294, with the EUR trading 0.07% lower against the USD from yesterday’s close.
The pair is expected to find support at 1.1276, and a fall through could take it to the next support level of 1.1259. The pair is expected to find its first resistance at 1.1325, and a rise through could take it to the next resistance level of 1.1357.
Going forward, investors would keep an eye on the Eurozone’s OECD interim economic outlook along with Germany’s Markit construction PMI for February, slated to release in a few hours. Later in the day, the US trade balance for December and the ADP employment change for February, will keep investors on the toes. Additionally, the Federal Reserve’s Beige Book release, due later today, will garner significant amount of investor attention.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
