EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR declined 0.11% against the USD and closed at 1.1259.
On macro front, the final composite PMI in the Euro-zone remained unchanged at a level of 56.8 in May, in line with the flash estimate and analysts’ expectations, supported by strong growth of new business. On the other hand, the Euro-zone’s PMI services PMI inched lower to 56.3 in May from 56.4 reported in the previous month, but was slightly above the preliminary estimate of 56.2.
Meanwhile, Germany’s composite PMI unexpectedly rose to 57.4 in May from 56.7 in April and was up from the flash estimate of 57.3. Additionally, the nation’s services activity remained stable in May from last month, with the final PMI reading coming in at 55.4. Markets were expecting the index to fall to level of 55.2. The preliminary figures had also recorded a drop to 55.2.
The US Dollar pared its initial gains against other major currencies, after reports showed that activity in the US service sector slowed more than expected in May and the nation’s factory orders fell for the first time in five months in April.
Data showed that the US ISM non-manufacturing PMI dropped to a level of 56.9 in May, snapping its four consecutive months of gains, compared to market expectations of a fall to 57.1. The non-manufacturing PMI had recorded a level of 57.5 in the prior month. Moreover, the final Markit US services PMI reading for May came in at 53.6, up from 53.1 recorded in the previous month but lower than the initial estimate of 54.0.
In other economic news, the final durable goods orders fell more than expected on a monthly basis in April, after it registered a drop of 0.8%, compared to a revised rise of 2.3% in the prior month. The preliminary figures had indicated a fall of 0.7%, while markets were expecting durable goods orders to drop 0.6%.
Meanwhile, the US factory orders declined 0.2% in April, meeting the consensus estimate, from a revised rise of 1.0% in March.
In the Asian session, at GMT0300, the pair is trading at 1.1273, with the EUR trading 0.12% higher from yesterday’s close.
The pair is expected to find support at 1.1245, and a fall through could take it to the next support level of 1.1217. The pair is expected to find its first resistance at 1.1290, and a rise through could take it to the next resistance level of 1.1307.
Moving ahead, investors will focus on the Euro-zone Sentix investor confidence for June along with retail sales data for April, both due to release today. Also, JOLTS job openings data for April in the US, scheduled to release later in the day, will be closely watched by traders.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
