EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose 0.11% against the USD and closed at 1.3087, after the US Automatic Data Processing, Inc’s private sector employment increased by 135.0K in May, much lower than the expected increase by 165.0K in May. Meanwhile, the US mortgage applications declined at a faster pace during last week and the non-farm productivity rose less than preliminary estimate in the Q1 2013. Separately, factory orders increased 1.0% (MoM) to $474.0 billion in April. However, the Institute for Supply Management (ISM) reported that its non-manufacturing purchasing managers’ index (PMI) rose to a reading of 53.7 in May.
Moreover, the Federal Reserve’s latest Beige Book report indicated that the US economy expanded at a modest to moderate pace across most of the country in the past six weeks as the housing recovery continued to show solid gains but federal budget cuts dampened manufacturing.
In the Euro-zone, retail sales dropped more-than-expected in April, while its services PMI rose to 47.2 in May and composite PMI advanced to 47.7 in May. German services PMI rose less than the preliminary estimate in May, whereas Spain continued to impress market participants as its services PMI jumped to a reading of 47.3 in May.
In the Asian session, at GMT0300, the pair is trading at 1.3095, with the EUR trading marginally higher from yesterday’s close.
The pair is expected to find support at 1.3059, and a fall through could take it to the next support level of 1.3024. The pair is expected to find its first resistance at 1.3123, and a rise through could take it to the next resistance level of 1.3152.
Investors await the European Central Bank (ECB) interest rate decision and monetary policy statement scheduled for release later today. The ECB head, Mario Draghi’s speech would garner much of attention after he and other policy makers earlier have hinted that they are open to negative interest rates.
The currency pair is trading just above its 20 Hr and 50 Hr moving averages.
