EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR declined 0.15% against the USD and closed at 1.1006.
In the US, data showed that the annualised gross domestic product (GDP) advanced 2.1% on a quarterly basis in 3Q 2019, more than market expectations and preliminary figures for a rise of 1.9%. In the prior quarter, GDP had recorded an increase of 2.0%. Moreover, the nation’s preliminary durable goods orders unexpectedly rose 0.6% on a monthly basis in October, defying market expectations for a drop of 0.7%. In the previous month, durable goods orders had registered a revised drop of 1.4%. Further, the MBA mortgage applications rose 1.5% on a weekly basis in the week ended 22 November 2019, following a decline of 2.2% in the prior week. Also, the seasonally adjusted initial jobless claims dropped more-than-expected to a level of 213.0K in the week ended 22 November 2019, compared to a revised level of 228.0K in the prior week. Market participants had expected initial jobless claims to ease to a level of 220.0K. Moreover, the nation’s personal spending rose 0.3% on a monthly basis in October, in line with market expectations. In the prior month, personal spending had recorded a rise of 0.2%.
On the other hand, the Chicago Purchasing Managers’ Index climbed to a level of 46.3 in November, less than market expectations for an advance to a level of 47.0. In the prior month, the index had recorded a reading of 43.2. Further, the US pending home sales eased 1.7% on a monthly basis in October, compared to an advance of 1.5% in the previous month. Additionally, personal income remained flat on a monthly basis in October, compared to a rise of 0.3% in the prior month.
The Federal Reserve’s (Fed) latest Beige Book showed that the US economy expanded at a modest pace from October to mid-November and highlighted an optimistic outlook for the economy. Further, it reported that employment slightly rose despite tighter labour market across the country. With regard to inflation, the report indicated that prices rose at a modest pace during the reporting period.
In the Asian session, at GMT0400, the pair is trading at 1.1005, with the EUR trading a tad lower against the USD from yesterday’s close.
The pair is expected to find support at 1.0992, and a fall through could take it to the next support level of 1.0979. The pair is expected to find its first resistance at 1.1018, and a rise through could take it to the next resistance level of 1.1031.
Amid no major economic releases in the US today, investors would keep an eye on Euro-zone’s M3 money supply for October along with consumer confidence index, business climate index and economic sentiment indicator, all for November, set to release in a few hours. Additionally, Germany’s consumer price index (CPI) for November, will keep investors on their toes.
The currency pair is showing convergence with its 20 Hr moving average and trading below its 50 Hr moving average.
