EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR rose 0.11% against the USD and closed at 1.1318 on Friday, after Euro-zone’s consumer inflation advanced as estimated in February.
On the macro front, the Euro-zone’s final consumer price index (CPI) rose 1.5% on an annual basis in February, in line with market expectations and confirming the preliminary print. The CPI had recorded a gain of 1.4% in the previous month.
The US dollar declined against a basket of currencies on Friday, amid downbeat US economic data.
In the US, data indicated that the US NY Empire State manufacturing index unexpectedly declined to a level of 3.7 in March, defying market expectations for a rise to a level of 10.0. In the previous month, the index had registered a reading of 8.8. Moreover, the nation’s manufacturing production surprisingly fell 0.4% on a monthly basis in February, declining for the second consecutive month and confounding market expectations for an advance of 0.1%. In the prior month, manufacturing production had registered a revised drop of 0.5%. Additionally, the US industrial production climbed 0.1% on a monthly basis in February, less than market expectations for a rise of 0.4% and compared to a revised fall of 0.4% in the prior month.
On the contrary, the Reuters/Michigan consumer sentiment index jumped to a level of 97.8 in March, surpassing market expectations for an advance to a level of 95.7. The index had registered a level of 93.8 in the previous month. Moreover, the nation’s JOLTs job openings unexpectedly advanced to a level of 7581.0K in January, compared to market consensus for a fall to a level of 7225.0K. The JOLTs job openings had registered a revised reading of 7479.0K in the previous month.
In the Asian session, at GMT0400, the pair is trading at 1.1335, with the EUR trading 0.15% higher against the USD from Friday’s close.
The pair is expected to find support at 1.1309, and a fall through could take it to the next support level of 1.1282. The pair is expected to find its first resistance at 1.1353, and a rise through could take it to the next resistance level of 1.1370.
Looking ahead, traders would closely monitor the Euro-zone’s trade balance for January, set to release in a few hours. Later in the day, the US NAHB housing market index for March, will garner significant amount of investors’ attention.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
