EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR declined 0.37% against the USD and closed at 1.1216.
On the data front, Euro-zone’s economic sentiment index declined to a level of -43.6 in August, compared to a reading of -20.3 in the previous month.
Separately, Germany’s final consumer price index advanced to a 3-month high level of 1.7% on a yearly basis in July, meeting market expectations and confirming the preliminary figures. In the previous month, the consumer price index had risen 1.6%.
On the contrary, the nation’s ZEW economic sentiment index plunged to a level of -44.1 in August, declining to its lowest level since December 2011 and more than market expectations for a fall to -28.0. The index had recorded a reading of -24.5 in the previous month. Moreover, the ZEW current situation index dropped to a level of -13.5 in August, compared to market consensus for a fall to a level of -6.3. The index had recorded a level of -1.1 in the previous month.
The US dollar gained ground against its major peers, following the US President, Donald Trump’s decision to delay tariffs on some Chinese products.
In the US, data showed that the consumer price index (CPI) rose 0.3% on a monthly basis in July, at par with market expectations. The CPI had recorded a gain of 0.1% in the prior month. Further, the nation’s NFIB small business optimism index climbed to a level of 104.7 in July, compared to a level of 103.3 in the prior month. Market participants had anticipated the index to rise to a level of 104.0.
In the Asian session, at GMT0300, the pair is trading at 1.1176, with the EUR trading marginally higher against the USD from yesterday’s close.
The pair is expected to find support at 1.1155, and a fall through could take it to the next support level of 1.1133. The pair is expected to find its first resistance at 1.1213, and a rise through could take it to the next resistance level of 1.1250.
Moving ahead, traders would await Euro-zone’s industrial production for June and gross domestic product (GDP) for 2Q along with Germany’s GDP for 2Q, set to release in a few hours. Later in the day, the US MBA mortgage applications will be on investors’ radar.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
