EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR rose 0.33% against the USD and closed at 1.1296.
On the macro front, the Euro-zone’s seasonally adjusted final gross domestic product (GDP) rose 0.2% on a quarterly basis in 4Q18, in line with expectations and compared to a similar rise in the prior quarter. The preliminary figures had also indicated an advance of 0.2%.
In Germany, seasonally adjusted flash GDP remained unchanged on a quarterly basis in 4Q 2018, compared to market anticipation for a rise of 0.1%. In the previous quarter, GDP had registered a fall of 0.2%.
Separately, the US dollar declined against the Euro yesterday, following disappointing US retail sales data.
In the US, data showed that the US advance retail sales unexpectedly fell 1.2% on a monthly basis in December, declining to its lowest level in nine years and defying market consensus for an advance of 0.1%. Advance retail sales had recorded a revised climb of 0.1% in the prior month. Moreover, the nation’s business inventories unexpectedly dropped 0.1% on a monthly basis in November, compared to a rise of 0.6% in the preceding month. Markets had anticipated business inventories to climb 0.2%. Additionally, fresh figures showed that seasonally adjusted initial jobless claims unexpectedly advanced to 239.00K in the week ended 9 February 2019, compared to a revised reading of 235.00K in the prior week.
Meanwhile, the nation’s producer price index climbed 2.0% on an annual basis in January, rising at its weakest pace since July 2017 and compared to a gain of 2.5% in the previous month. Market participants had envisaged the index to rise 2.3%.
In the Asian session, at GMT0400, the pair is trading at 1.1286, with the EUR trading 0.09% lower against the USD from yesterday’s close.
The pair is expected to find support at 1.1254, and a fall through could take it to the next support level of 1.1222. The pair is expected to find its first resistance at 1.1314, and a rise through could take it to the next resistance level of 1.1342.
Looking forward, traders would await the Euro-zone’s trade balance data for December, set to release in a few hours. Later in the day, the US Empire state manufacturing index and the Michigan consumer sentiment index, both for February along with the US industrial production and manufacturing production, both for January, will keep traders on their toes.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
