EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR rose 0.50% against the USD and closed at 1.1846.
On the macro front, Euro-zone’s consumer confidence index declined to -15.0 in July, in line with market expectations and compared to a reading of -14.7 in the prior month. The preliminary figures had also recorded a drop to -15.0. Additionally, the unemployment rate unexpectedly rose to 7.8% in June, compared to a revised rate to 7.7% in the prior month. Moreover, the services sentiment index increased to -26.1 in July, less than market anticipations for a rise to a level of -25.0. In the prior month, the index had recorded a revised reading of -35.5. Meanwhile, the industrial confidence climbed to -16.2 in July, more than market forecast for a rise to a level of -17.0 and compared to a revised fall of -21.6 in the previous month. Also, the economic sentiment advanced to a 4-month high 82.3 in July, more than market consensus for a rise to a level of 81.0 and compared to a revised reading of 75.8 earlier month. Separately, Germany’s gross domestic product dropped 10.1% on a quarterly basis in 2Q 2020, recording its largest decline since 1970 and more than market expectations for fall of 9.0%, In the previous quarter, GDP had recorded a revised fall of 2.0%. Moreover, the preliminary consumer price index (CPI) unexpectedly dropped 0.1% on an annual basis in July, compared to a rise of 0.9% in the previous month. Meanwhile, the unemployment rate remained unchanged at 6.4% in July.
In the US, annualised gross domestic product plunged 32.9% in the second quarter of 2020, less than market expectations for a fall of 34.1% and compared to a drop of 5.0% in the prior month. Moreover, initial jobless claims climbed to 1434.0K in the week ended 24 July 2020, less than market forecast for a rise to a level of 1450.0K and compared to a revised reading of 1422.0K in the previous week.
In the Asian session, at GMT0300, the pair is trading at 1.1885, with the EUR trading 0.33% higher against the USD from yesterday’s close.
The pair is expected to find support at 1.1776, and a fall through could take it to the next support level of 1.1666. The pair is expected to find its first resistance at 1.1950, and a rise through could take it to the next resistance level of 1.2014.
Going forward, traders would keep a watch on Euro-zone’s consumer price index for July and gross domestic product for 2Q 2020, along with Germany’s retail sales for June, slated to release in a few hours. Later in the day, the US personal income and spending, both for June, followed by the Chicago Purchasing Managers’ Index and the Michigan consumer sentiment index, both for July, would keep investors on their toes.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
