EURUSD Movement
On Friday, EUR declined 0.13% against the USD and closed at 1.3019.
Early on Friday, the US Federal Reserve Governor, Jeremy Stein, stated that the Fed might consider reducing the pace of its asset purchases by September. Stein also indicated that the central bank has no plans to change short term interest rates.
In the US, the final Michigan consumer sentiment surprised investors and rose above the preliminary reading in June. However, the purchasing managers’ index of Chicago region dropped to a level of 51.6 in June, the largest monthly drop in over four years.
Meanwhile, the Euro-zone had a string of economic news released on Friday, wherein retail sales in Germany rebounded in May and Italy’s business confidence and consumer price index advanced more than market expectations in June. German’s consumer price inflation rose in line with market estimates in June.
In the Asian session, at GMT0300, the pair is trading at 1.3023, with the EUR trading marginally higher from Friday’s close.
The pair is expected to find support at 1.2974, and a fall through could take it to the next support level of 1.2925. The pair is expected to find its first resistance at 1.3088, and a rise through could take it to the next resistance level of 1.3153.
Later today, Euro-zone’s unemployment rate and the preliminary consumer price index are scheduled for release, along with manufacturing PMI data in Germany, France, Italy and the US.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
