EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR declined 0.07% against the USD and closed at 1.3635, as the latter received a boost from the latest batch of upbeat US economic releases. Data from the US showed that durable goods orders in the nation unexpectedly rose 0.8%, for a third consecutive month in April while consumer confidence in the economy advanced to the second-highest level since 2008 in May. Separately, Markit Economics reported that activities in the US service sector expanded at its fastest rate since March 2012 in May. However, the Atlanta Fed President, Dennis Lockhart, hinted that the US Fed was in no rush to exit from its era of loose monetary policy and raise its interest rate even as he expected growth in the world’s largest economy to rebound around 3.0% later this year.
Meanwhile, the Euro came under pressure after the ECB President, Mario Draghi, reiterated that the central bank was vigilant against deflation risks in the economy and prepared to act swiftly with policy measures, including a broad asset-buying programme. Separately, another ECB policymaker, Ewald Nowotny, indicated that the ECB was concerned about the deflations threats arising from a prolonged period of low inflation in the economy, which, according to him, also affected the economic performance of the Euro-zone economy. Additionally, the IMF, in its latest report on Spain, urged the ECB to undertake additional policy easing measures to boost the current weak-demand in Spain and assist economic recovery in the nation as well as in the entire Euro-zone economy.
In economic news, data from the Euro-zone member nations showed that consumer confidence in Italy unexpectedly jumped to a four-year high level of 106.3 in May while French consumer confidence remained at a record-low level of 85.0 this month.
In the Asian session, at GMT0300, the pair is trading at 1.3638, with the EUR trading marginally higher from yesterday’s close.
The pair is expected to find support at 1.3611, and a fall through could take it to the next support level of 1.3585. The pair is expected to find its first resistance at 1.3665, and a rise through could take it to the next resistance level of 1.3693.
Amid a slew of economic releases from the Euro-zone and its member nations, traders would mainly focus on Euro-zone’s consumer confidence and business confidence data, along with Germany’s unemployment data.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
