EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR rose 0.05% against the USD and closed at 1.0971.
On the data front, the Euro-zone producer price index (PPI) rose 0.2% on a yearly basis in July, meeting market expectations. The PPI had recorded an increase of 0.7% in the previous month.
The US dollar declined against its peers, following a decline in the US manufacturing activity.
In the US, data indicated that the ISM manufacturing index unexpectedly fell to a level of 49.1 in September, contracting for the first time in 3 years and defying market anticipations for an unchanged reading. In the prior month, the index had recorded a reading of 51.2. Moreover, the US final Markit manufacturing PMI declined to a level of 50.3 in August, compared to a level of 50.4 in the previous month. Market participants and preliminary figures had indicated the PMI to fall to a level of 49.9. Further, the nation’s construction spending advanced 0.1% on a monthly basis in July, less than market consensus for a rise of 0.3%. In the previous month, construction spending had recorded a revised fall of 0.7%.
In the Asian session, at GMT0300, the pair is trading at 1.0976, with the EUR trading 0.05% higher against the USD from yesterday’s close.
The pair is expected to find support at 1.0941, and a fall through could take it to the next support level of 1.0907. The pair is expected to find its first resistance at 1.0995, and a rise through could take it to the next resistance level of 1.1015.
Looking ahead, traders would await Euro-zone’s Markit services PMI for August and retail sales for July, set to release in a few hours. Later in the day, the US trade balance data for July along with the MBA mortgage applications, will garner significant amount of investors’ attention. Also, the Federal Reserve’s Beige Book, will be on investors’ radar.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
