EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR rose 0.32% against the USD and closed at 1.2297, following better-than-expected ZEW economic sentiment surveys across the common currency region as well as robust consumer confidence data in the Euro-zone.
The Euro-zone’s ZEW economic sentiment index climbed to a 6-month high level of 31.8 in January, thus pointing to a strong pick-up in economic confidence as the region continues its strong growth momentum. The index had recorded a reading of 29.0 in the prior month.
Another data revealed that the region’s flash consumer confidence index climbed more-than-anticipated to a level of 1.3 in January, highlighting the increasingly positive mood among consumers as the region is in the midst of a solid economic expansion. In the previous month, the index had registered a level of 0.5, while investors had envisaged for a rise to a level of 0.6.
Separately, ZEW investor morale in Germany surged to an 8-month high level of 20.4 in January, beating market expectations for an advance to a level of 17.7, as investors shrugged off political uncertainty in Berlin and focused on brighter economic prospects in the Euro-bloc’s largest economy. In the previous month, the index had registered a level of 17.4. Also, the nation’s ZEW current situation index jumped to an all-time high level of 95.2 in January, topping market anticipation for a rise to a level of 89.6 and compared to a level of 89.3 in the prior month.
In the US, data indicated that the Richmond Fed manufacturing index registered a more-than-anticipated drop to a level of 14.0 in January, compared to a reading of 20.0 in the prior month, while markets were expecting the index to fall to a level of 19.0.
In the Asian session, at GMT0400, the pair is trading at 1.2317, with the EUR trading 0.16% higher against the USD from yesterday’s close.
The pair is expected to find support at 1.2254, and a fall through could take it to the next support level of 1.2191. The pair is expected to find its first resistance at 1.2349, and a rise through could take it to the next resistance level of 1.2381.
Trading trends in the Euro today is expected to be determined by the release of the flash Markit manufacturing and services PMIs for January across the Euro-zone, scheduled in a few hours. Later in the day, the release of US preliminary Markit manufacturing and services PMIs for January, followed by the existing home sales data for December, would garner significant amount of investor attention.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
