EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR declined 0.32% against the USD and closed at 1.1447.
On the macro front, the Euro-zone’s seasonally adjusted preliminary gross domestic product (GDP) expanded at its slowest pace since 2014 by 0.2% on quarterly basis in 4Q 2018, at par with market consensus and compared to a similar rise in the prior quarter. Meanwhile, the region’s unemployment rate remained unchanged at 7.9% in December, in line with market expectations.
Separately, in Germany, seasonally adjusted unemployment rate remained unchanged at 5.0% in January. Meanwhile, the nation’s retail sales unexpectedly slid 2.1% on an annual basis in December, declining at its quickest pace in 11 years and defying market expectations for a rise of 1.5%. Retail sales had recorded a gain of 1.1% in the prior month.
In the US, data indicated that the US Chicago Fed purchasing managers’ index dropped to a level of 56.7 in January, more than market expectations for a fall to a level of 61.5. In the prior month, the index had registered a revised reading of 63.8. Moreover, the nation’s seasonally adjusted initial jobless claims advanced to a level of 253.0K in the week ended 26 January 2019, compared to a revised reading of 200.0K in the prior week. Market participants had expected the initial jobless claims to climb to a level of 215.0K.
On the contrary, the US new home sales rose to an 8-month high level of 16.9% on monthly basis, to a level of 657.0K in November. Market participants had envisaged new home sales to advance to a level of 570.0K.
In the Asian session, at GMT0400, the pair is trading at 1.1442, with the EUR trading slightly lower against the USD from yesterday’s close.
The pair is expected to find support at 1.1414, and a fall through could take it to the next support level of 1.1386. The pair is expected to find its first resistance at 1.1492, and a rise through could take it to the next resistance level of 1.1542.
Moving ahead, traders would keep an eye on the Euro-zone’s consumer price index for January, along with Markit manufacturing PMI for January, set to release across the euro bloc in a few hours. Later in the day, the US non-farm payrolls, unemployment rate, average hourly earnings, the Markit manufacturing PMI, the ISM manufacturing and the Michigan consumer sentiment index, all for January, followed by construction spending for December, will keep traders on their toes.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
