EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR rose 0.2% against the USD and closed at 1.1129.
In economic news, the Euro-zone’s preliminary consumer confidence index fell more-than-anticipated to a level of -8.8 in February, touching its lowest level since December 2014, indicating that the region’s consumers are less optimistic about the region’s growth prospects. Meanwhile, markets were expecting it to fall to a level of -6.6, from a level of -6.3 in the previous month. Elsewhere, in Germany, the producer price index eased more-than-expected by 0.7% MoM in January, compared to market expectations for a fall of 0.3% and following a decline of 0.5% in the preceding month.
In the US, the consumer price index unexpectedly remained flat on a monthly basis in January, while markets expected it to decline by 0.1%, compared to a similar drop recorded in the previous month. On the other hand, core consumer prices in the nation rose more than expected by 0.3% on a monthly basis in January, following an increase of 0.2% in December, thereby keeping the Fed rate hike on the table.
Separately, the Cleveland Fed President, Loretta Mester, remained upbeat about the US economy and opined that the central bank would “gradually” increase the pace of rate hike, as the US inflation continues to improve.
In the Asian session, at GMT0400, the pair is trading at 1.1112, with the EUR trading 0.15% lower from Friday’s close.
The pair is expected to find support at 1.1072, and a fall through could take it to the next support level of 1.1033. The pair is expected to find its first resistance at 1.1146, and a rise through could take it to the next resistance level of 1.1179.
Moving ahead, investors will look forward to the Euro-zone’s Markit services and manufacturing PMI data, scheduled to be released in a few hours. Additionally, US Makit manufacturing PMI and Chicago Fed national activity index, slated to be released later in the day, will grab a lot of market attention.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
