EURUSD Movement
For the 24 hours to 23:00 GMT, EUR declined 1.04% against the USD and closed at 1.3580, after the latest batch of dismal economic releases in the Euro-zone, spurred fresh speculation that the European Central Bank (ECB) would take further easing measures to support economic growth in the region.
In the Euro-zone, a report showed that the region’s consumer price index rose 0.7% (YoY) in October, failing to meet market expectations for a rise of 1.1%. Negative sentiment was also fuelled after data revealed that unemployment rate in the region was steady at 12.2% in September, defying analysts’ call for a drop to to 12.0%. Separately, the GfK consumer confidence index in Germany declined to a reading of 7.0 in November, defying market expectation for a rise to 7.2 from a level of 7.1 registered in the preceding month. Also, Germany’s retail sales declined a more-than-expected 0.4% (MoM) in September, against expectations for a rise of 0.4%.
Meanwhile, in the US, data showed that initial jobless claim in the nation fell to a level of 340,000 during the week ended October 25, almost matching consensus for a decline to 339,000 from a previous week’s level of 350,000.
In the Asian session, at GMT0400, the pair is trading at 1.3554, with the EUR trading 0.19% lower from yesterday’s close.
The pair is expected to find support at 1.3491, and a fall through could take it to the next support level of 1.3427. The pair is expected to find its first resistance at 1.3667, and a rise through could take it to the next resistance level of 1.3779.
Amid lack of economic releases in the Euro-zone, market participants are expected to keep a close tab on global economic news for further guidance in the pair.
The currency pair is trading below with its 20 Hr and 50 Hr moving averages.
