EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR declined 0.3% against the USD and closed at 1.0723.
In economic news, data revealed that the Euro-zone’s seasonally adjusted final gross domestic product (GDP) rose 0.3% on a quarterly basis in the third quarter of 2016, confirming the preliminary print and following a similar rise in the previous quarter.
Moreover, Germany’s seasonally adjusted factory orders rebounded 4.9% on a monthly basis in October, posting its fastest pace of growth in more than two years, thus hinting at a strong fourth quarter growth for the Euro-zone’s largest economy. Meanwhile, markets expected factory orders to gain 0.6%, following a revised drop of 0.3% in the prior month. Further, the nation’s Markit construction PMI advanced to a level of 53.9 in November, following a reading of 52.9 in the preceding month.
The US Dollar gained ground against its major peers, after robust US factory orders data boosted optimism over the health of the world’s largest economy.
Data indicated that the US factory orders jumped to its highest level in 16-months, after it increased faster-than-expected by 2.7% MoM in October, suggesting that the nation’s manufacturing sector is gaining momentum after struggling to gain traction throughout the year. Factory orders had recorded a revised rise of 0.6% in the prior month, whereas investors had envisaged for an advance of 2.6%. Also, the nation’s final durable goods orders advanced more-than-expected by 4.6% on a monthly basis in October, compared to a rise of 4.8% in the flash estimate and after recording a revised rise of 0.4% in the prior month. On the contrary, the nation’s trade deficit widened more-than-expected to $42.6 billion in October, jumping to its highest level since March 2015, as imports surged to a 14-month peak. The nation posted a revised trade deficit of $36.2 billion in the prior month, while markets were anticipating the nation to record a deficit of $42.0 billion.
In the Asian session, at GMT0400, the pair is trading at 1.0718, with the EUR trading marginally lower against the USD from yesterday’s close.
The pair is expected to find support at 1.0681, and a fall through could take it to the next support level of 1.0644. The pair is expected to find its first resistance at 1.0770, and a rise through could take it to the next resistance level of 1.0822.
Moving ahead, investors will look forward to Germany’s industrial production data, scheduled to release in a few hours. Additionally, in the US, mortgage applications and JOLTs jobs openings data are slated to release later in the day.
The currency pair is trading between its 20 Hr and 50 Hr moving averages.
