EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR rose 0.54% against the USD and closed at 1.1074.
On the macro front, Euro-zone’s the economic sentiment indicator advanced to 67.5 in May, less than market expectations for a rise of 70.3 and compared to a revised reading of 64.9 in the previous month. Additionally, the industrial confidence index climbed to -27.5 in May, less than market expectations for a rise to a level of -25.7 and compared to a revised level of -32.5 in the prior month. Moreover, the business climate eased to -2.4 in May, recording its lowest level since 2009 and compared to a revised reading of -2.0 in the earlier month. Furthermore, the services sentiment indicator unexpectedly dropped to -43.6 in May, compared to a revised reading of -38.6 in the prior month. Meanwhile, the consumer confidence rose to -18.8 in May, in line with market expectations and compared to a revised reading of -22.0 in the previous month. The preliminary figures had also recorded a rise to -18.80. Separately, Germany’s consumer price inflation slowed to 0.6% in May, compared to a level of 0.9% in the prior month.
In the US, the annualised gross domestic product (GDP) dropped 5.0% in the first quarter of 2020, compared to a fall of 4.8% in the previous quarter. The preliminary figures had indicated a drop of 4.8%. Moreover, initial jobless claims declined to 2123.0K in the week ended 22 May 2020, less than market anticipations for a drop of 2100.0K and compared to a revised reading of 2446.0K in the earlier week. Furthermore, pending home sales plunged 21.8% on a monthly basis in April, compared to a drop of 20.8% in the prior month. Meanwhile, durable goods orders fell 17.2% in April, less than market consensus for a drop of 19.0% and compared to a revised fall of 16.6% in the prior month.
In the Asian session, at GMT0300, the pair is trading at 1.1089, with the EUR trading 0.14% higher against the USD from yesterday’s close.
The pair is expected to find support at 1.1023, and a fall through could take it to the next support level of 1.0957. The pair is expected to find its first resistance at 1.1124, and a rise through could take it to the next resistance level of 1.1159.
Moving ahead, traders would keep a watch on Euro-zone’s consumer price index for May along with Germany’s retail sales for April, slated to release in a few hours. Later in the day, the US goods trade balance, personal income and spending, all for April, along with the Chicago Purchasing Managers’ Index and the Michigan consumer sentiment index, both for May, would keep investors on their toes.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
