EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR rose 0.38% against the USD and closed at 1.1237.
On the macro front, the Euro-zone’s seasonally adjusted construction output eased to a 3-month low level of 0.8% on a monthly basis in April, following a revised drop of 0.4% in the previous month.
Separately, in Germany, the producer price index unexpectedly fell 0.1% on a monthly basis in May, compared to a gain of 0.5% in the prior month. Market participants had envisaged the PPI to register a rise of 0.2%.
The Federal Reserve’s, in its latest monetary policy meeting, left its benchmark interest rate unchanged at 2.50%, as widely expected. The Fed Chairman Jerome Powell noted that the U.S. economic outlook is increasingly uncertain, citing trade tensions and slowing global growth.
In the US, data showed that the MBA mortgage applications dropped 3.4% on a weekly basis in the week ended 14 June 2019, declining from its 33-year high and following an increase of 26.8% in the prior week.
In the Asian session, at GMT0300, the pair is trading at 1.1267, with the EUR trading 0.27% higher against the USD from yesterday’s close.
The pair is expected to find support at 1.1213, and a fall through could take it to the next support level of 1.1159. The pair is expected to find its first resistance at 1.1295, and a rise through could take it to the next resistance level of 1.1323.
Looking ahead, traders would await Euro-zone’s consumer confidence for June, set release in a few hours. Later in the day, the US Philadelphia Fed business outlook for June, the leading index for May and the initial jobless claims, will pique significant amount of investors’ attention.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
