EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR slightly declined against the USD and closed at 1.1389.
On macro front, the Euro-zone’s final consumer price inflation slowed to its lowest level in 8-months to 1.6% on an annual basis in December, in line with market expectations as well as confirming the preliminary print. In the previous month, the CPI had climbed 1.9%. Moreover, the region’s seasonally adjusted construction output eased 0.1% on a monthly basis in November, following a drop of 1.6% in the prior month.
In the US, data indicated that the US Philadelphia Fed manufacturing index climbed to a level of 17.0 in January, compared to a revised reading of 9.1 in the previous month. Market participants had anticipated the index to rise to a level of 9.5. Moreover, the nation’s seasonally adjusted initial jobless claims unexpectedly declined to a level of 213.0K in the week ended 12 January 2019, defying market expectations for a gain to a level of 220.0K. In the preceding week, the initial jobless claims had recorded a level of 216.0K.
In the Asian session, at GMT0400, the pair is trading at 1.1396, with the EUR trading 0.06% higher against the USD from yesterday’s close.
The pair is expected to find support at 1.1375, and a fall through could take it to the next support level of 1.1355. The pair is expected to find its first resistance at 1.1411, and a rise through could take it to the next resistance level of 1.1427.
Amid lack of macroeconomic releases in the Euro-zone today, traders would focus on the US industrial production and manufacturing production, both for December along with the Michigan consumer sentiment index for January, slated to release later in the day.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
