EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose marginally against the USD and closed at 1.3522.
On the economic front, Euro-zone’s consumer price index rose 1.1% (YoY) in September, compared to a 1.3% rise recorded in the previous month. Meanwhile, on a non-seasonally adjusted basis, Euro-zone’s trade surplus stood at €7.1 billion in August, more than analysts’ expectation for a €6.5 billion surplus and compared to a revised surplus of €18.0 billion registered in the earlier month.
However, the gains were capped after the European Central Bank (ECB) President, Mario Draghi, stated that the Euro-zone’s economy will stay “subdued and uneven” for a while. He also highlighted the possibility for the central bank to cut its benchmark interest further to assist growth in the region.
Elsewhere, in the US, the Senate voted 81-18 to halt the 16-day partial government shutdown and to raise the US debt limit, preventing the nation form a potential default. Separately, Fed’s Beige book reported a “modest to moderate” economic growth in the US and indicated that about a third of the country experienced slower growth in September and early October, due to a government shutdown. Meanwhile, the NAHB housing market index in the US advanced to a reading of 55.0 in the month of October, defying analysts’ call for a rise to 58.0 from a reading of 57.0 witnessed in the previous month.
In the Asian session, at GMT0300, the pair is trading at 1.3547, with the EUR trading 0.18% higher from yesterday’s close.
The pair is expected to find support at 1.3490, and a fall through could take it to the next support level of 1.3433. The pair is expected to find its first resistance at 1.3586, and a rise through could take it to the next resistance level of 1.3625.
Market participants are awaiting the release of Euro-zone’s current account and construction output data, due later today.
The currency pair is trading just above its 20 Hr and 50 Hr moving averages.
