EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR rose 0.3% against the USD and closed at 1.1763 on Friday.
On the economic front, the Euro-zone’s seasonally adjusted current account surplus narrowed to a level of €21.2 billion in June, hitting its lowest level since August 2014. The region had registered a revised surplus of €30.5 billion in the previous month. Moreover, the region’s seasonally adjusted construction output declined 0.5% on a monthly basis in June, easing for the second consecutive month. In the previous month, construction output had registered a revised drop of 0.2%.
Separately, Germany’s producer price index rose more-than-expected by 2.3% on an annual basis in July, topping market consensus for a gain of 2.2%, but growing at its slowest pace in seven months. The index had posted an increase of 2.4% in the prior month.
The greenback traded in negative territory against its key peers on Friday, after the removal of the White House chief strategist, Steve Bannon, sparked fresh concerns over the US President, Donald Trump’s ability to deliver on its pro-growth agenda.
However, losses in the US Dollar were capped, after the release of an upbeat US economic data.
The flash Reuters/Michigan consumer confidence index in the US jumped more-than-expected to a level of 97.6 in August, surging to a seven-month high as Americans grew optimistic about the nation’s economic outlook. The index recorded a reading of 93.4 in the previous month, while market participants were anticipating for an advance to a level of 94.0.
In the Asian session, at GMT0300, the pair is trading at 1.1759, with the EUR trading slightly lower against the USD from Friday’s close.
The pair is expected to find support at 1.1729, and a fall through could take it to the next support level of 1.1698. The pair is expected to find its first resistance at 1.1782, and a rise through could take it to the next resistance level of 1.1804.
Moving ahead, investors will look forward to the German Buba monthly report, slated to release in a few hours. Also, the US Chicago Fed national activity index for July, 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.
