EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR declined 0.17% against the USD and closed at 1.1013.
Macroeconomic data showed that Euro-zone’s Markit manufacturing PMI rose unexpectedly to a level of 52.3 in October, compared to a reading of 52.0 in the previous month. Investors had expected it to remain steady. Further, manufacturing activity in Italy increased for the ninth straight month, recording a reading of 54.1 in October, compared to market expectations of a rise to 52.9, and after reaching a level of 52.7 in the previous month. Moreover, the final French manufacturing PMI remained steady at a level of 50.6 during the same month, compared to market expectations of an advance to 50.7. The preliminary figures had recorded a rise to 50.7. However, the final print of the manufacturing activity in Germany, the Euro-zone’s biggest economy, fell to a three-month low reading of 52.1 in October, compared to a reading of 52.3 in September. The preliminary figures had indicated a decline to 51.6.
The greenback gained ground after the US Markit manufacturing PMI rose to a level of 54.1 in October, reaching a 6-month high, from a reading of 53.1 in the previous month. The preliminary figures had recorded a rise to 54.0. On the other hand, the nation’s ISM manufacturing PMI index slid to more than a two-year low level of 50.1 in October, compared to market expectations of a fall to a level of 50.0. The index had recorded a reading of 50.2 in September.
In other economic news, the US ISM prices paid index increased to a level of 39.0 in October, higher than market expectations of an advance to 38.8, and after recording a reading of 38.0 in the previous month. Further, construction spending in the country rose more-than-expected by 0.6% MoM in September, from 0.7% in the previous month. Investors had expected it to rise 0.5%.
In the Asian session, at GMT0400, the pair is trading at 1.1016, with the EUR trading marginally higher from yesterday’s close.
The pair is expected to find support at 1.0993, and a fall through could take it to the next support level of 1.097. The pair is expected to find its first resistance at 1.1047, and a rise through could take it to the next resistance level of 1.1077.
Moving ahead, market participants will keep an eye on the ECB President, Mario Draghi’s speech, scheduled later in the day. Additionally, the US factory orders data for September, scheduled later today, will also attract investor attention.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
