EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR declined 0.38% against the USD and closed at 1.1663.
On the macro front, the Euro-zone’s final consumer confidence index slid to a level of -1.9 in August, confirming the preliminary print and following a revised level of -0.5 in the prior month. Market participants had anticipated the index to decline to a level of -1.9. Also, the region’s business climate indicator declined to a level of 1.2 in August, compared to market expectations for a drop to a level of 1.3. In the previous month, the business climate indicator had recorded a revised reading of 1.3. Moreover, the nation’s economic sentiment indicator fell to a level of 111.6 in August, for the eighth-consecutive month. In the prior month, the economic sentiment indicator had registered a reading of 112.1, while market participants had expected the indicator to ease to 111.9.
In the economic news, Germany’s seasonally adjusted unemployment rate remained unchanged at a rate of 5.2% in August, marking its lowest rate since German reunification in 1990 and at par with market expectations. Meanwhile, the preliminary consumer price index (CPI) rose 2.0% on a yearly basis in August, in line with market expectations. The CPI had registered a similar rise in the prior month.
In the US, data showed that US personal income advanced 0.3% on a monthly basis in July, undershooting market expectations for an advance of 0.4%. In the prior month, personal income had recorded a rise of 0.4%.
Separately, the US dollar rose against the euro, following robust US consumer spending and inflation data.
Data showed that personal spending rose 0.4% on a monthly basis in July, in line with market expectations. In the previous month, personal spending had registered a similar rise. Moreover, core personal consumption expenditure climbed 0.2% on a monthly basis in July, at par with market forecast. In the prior month, core personal consumption expenditure had recorded a rise of 0.1%. Personal income advanced 0.3% on a monthly basis in July, compared to a rise of 0.4% in the prior month. Market anticipation was for personal income to rise 0.4%.
On the other hand, the US seasonally adjusted initial jobless claims increased to a level of 213.0K in the week ended 25 August 2018, compared to a level of 210.0K in the prior week. Market participants had envisaged initial jobless claims to climb to a level of 212.0K.
In the Asian session, at GMT0300, the pair is trading at 1.1661, with the EUR trading slightly lower against the USD from yesterday’s close.
The pair is expected to find support at 1.1629, and a fall through could take it to the next support level of 1.1598. The pair is expected to find its first resistance at 1.1705, and a rise through could take it to the next resistance level of 1.1750.
Going forward, investors will keep an eye on the Euro-zone’s unemployment rate for July and the consumer price index for August, set to release in a few hours. Later in the day, the US Chicago PMI and the Michigan consumer sentiment index, both for August, will keep traders on their toes.
The currency pair is showing convergence with its 20 Hr moving average and trading below its 50 Hr moving average.
