EURUSD Movement
For the 24 hours to 23:00 GMT, EUR declined 0.32% against the USD and closed at 1.3742.
The US Dollar advanced after strong US GDP and weekly jobless claims data eased concerns on the growth of the world’s largest economy.
Data showed that the annualised US GDP rose 2.6% in the fourth quarter, more than the preliminary estimate of 2.4% rise, but below analysts’ expectations of a 2.7% gain. Separately, another report showed that initial jobless claims fell unexpectedly to a four-month low level of 311,000 for the week ended 21 March, while personal consumption expenditures in the fourth quarter climbed the most in three years . However, the gains in the greenback were capped after another report showed that pending home sales in the US economy fell for an eighth consecutive month in February to the lowest level since October 2011.
Meanwhile, the Cleveland Fed President, Sandra Pianalto opined that, despite the continued economic progress in the nation, the US economy is “still falling short of achieving the central bank’s objectives for maximum employment and 2% inflation target.” However, she remained optimistic on the growth of the US economy and projected the US GDP to register around 3.0% rise this year while unemployment rate to fall to 6.2% from its current level of 6.7%.
In the Euro-zone, data showed that the annual M3 money supply growth rose in line with economists’ projections for February, while lending to the private sector continued its downward trend.
Separately, a former ECB Executive Board member, Lorenzo Bini Smaghi, in a newspaper article, outlined the reason as to why the central bank should perform quantitative easing to assist the nation in achieving its inflation target.
In the Asian session, at GMT0400, the pair is trading at 1.3747, with the EUR trading marginally higher from yesterday’s close.
Earlier today, the Chicago Fed President, Charles Evans, opined that the US Fed would probably raise its benchmark interest rates in the second half of 2015 and that the timing would solely depend on the pace of inflation.
The pair is expected to find support at 1.3718, and a fall through could take it to the next support level of 1.3690. The pair is expected to find its first resistance at 1.3785, and a rise through could take it to the next resistance level of 1.3824.
Traders keenly await the release of the Euro-zone’s economic sentiment and Germany’s consume inflation data, for further cues in the Euro.
The currency pair is showing convergence with its 20 Hr moving average and is trading below its 50 Hr moving average.
