EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR rose 0.6% against the USD and closed at 1.1160, after the Euro-zone’s final consumer price index (CPI) advanced 1.9% on an annual basis in April, confirming the flash estimates. The CPI had recorded a rise of 1.5% in the previous month.
On the contrary, the region’s seasonally adjusted construction output fell 1.1% on a monthly basis in March. In the prior month, construction output had advanced by a revised 5.5%.
The US Dollar declined against its key counterparts, sparked by reports that the US President, Donald Trump, had allegedly asked former FBI Director, James Comey to end his investigation into his former security adviser, Michael Flynn.
On the data front, the US MBA mortgage applications fell 4.1% in the week ended 12 May 2017, following an advance of 2.4% in the prior week.
In the Asian session, at GMT0300, the pair is trading at 1.1155, with the EUR trading slightly lower against the USD from yesterday’s close.
The pair is expected to find support at 1.1100, and a fall through could take it to the next support level of 1.1044. The pair is expected to find its first resistance at 1.1191, and a rise through could take it to the next resistance level of 1.1226.
Going forward, market participants will keep a close watch on minutes of the European Central Bank’s (ECB) recent monetary policy meeting, slated for release in a few hours. Also, a speech by the ECB President, Mario Draghi will be eyed by traders. In the US, initial jobless claims and Philadelphia Fed manufacturing activity index for May, due to release later in the day, will be on investors’ radar.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
