EURUSD Movement
For the 24 hours to 23:00 GMT, EUR fell 0.62% against the USD and closed at 1.3192, as investors fretted over Euro-zone’s economic data. Moreover, a string of weak US economic figures further dented investor sentiment.
In the Euro-zone, the flash manufacturing purchasing managers index (PMI) dropped to a reading of 47.8 in February, against the expectations for a rise to 48.5, while, flash services PMI eased to a reading of 47.3 in February, against the expectations for a rise to 49.0.
Similarly, in France, the flash manufacturing PMI climbed to a level of 43.6 in February, tad lower than the expected a level of 43.8, while flash services PMI slipped to a level of 42.7 in February, compared to a level of 43.6 posted in the previous month.
Besides, the flash manufacturing PMI in Germany rose to a reading of 50.1 in February, compared to a reading of 49.8 posted in January. Market had expected the flash manufacturing PMI to rise to a reading of 50.5. However, flash services PMI fell to a reading of 54.1 in February, compared to a reading of 55.7 posted in the previous month. Market had expected the flash services PMI to fall to a reading of 55.5.
In the US, the Philadelphia index continued to deteriorate in February, while for the week ended 16 February 2013, initial jobless claims climbed to 362,000, compared to the previous week’s revised figure of 342,000. Market participants were expecting the claims to rise to 355,000. Moreover, the preliminary reading of manufacturing PMI released by Markit Economics, fell to a reading of 55.2 in February, from a reading of 55.8 recorded in January.
John Williams, the President of the Federal Reserve Bank (Fed) of San Francisco, urged the central bank to continue with its accommodative monetary policy well into the second half of 2013, in order to reach towards their mandated goals of maximum employment and price stability.
In the Asian session, at GMT0400, the pair is trading at 1.3212, with the EUR trading 0.15% higher from yesterday’s close.
This morning, in the US, the President of the Dallas Fed, Richard Fisher, has opined that instead of completely halting the asset purchases, the central bank should taper its bond buying program later this year, if the economy and labour market shows improvement.
The pair is expected to find support at 1.3156, and a fall through could take it to the next support level of 1.3101. The pair is expected to find its first resistance at 1.3272, and a rise through could take it to the next resistance level of 1.3333.
Ahead today, investors would focus on German GDP and IFO’s business climate, current assessment and expectations data. Meanwhile, Italian CPI, consumer confidence and retail sales are also awaited. The European Commission’s economic growth forecast is also due today.
The currency pair is trading between its 20 Hr and 50 Hr moving averages.
