EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR declined 0.21% against the USD and closed at 1.1207.
On the data front, the Euro-zone’s seasonally adjusted industrial production fell 0.3% on a monthly basis in March, declining for the second consecutive month and at par with market expectations. In the previous month, industrial production had registered a revised drop of 0.1%. Moreover, the region’s ZEW economic sentiment index declined to a level of -1.6 in May, following a reading of 4.5 in the prior month.
Separately in Germany, the final consumer price index (CPI) climbed 2.0% on a yearly basis in April, meeting market expectations and confirming the preliminary print. The CPI had recorded a rise of 1.3% in the previous month. Further, the ZEW current situation index advanced to a level of 8.2 in May, more than market anticipations for a rise to a level of 6.3. The index had recorded a reading of 5.5 in the previous month. On the other hand, the nation’s ZEW economic sentiment index unexpectedly dropped to a level of -2.1 in May, defying market consensus for a gain to a level of 5.0. In the prior month, the index had registered a reading of 3.1.
In the US, data showed that the NFIB small business optimism index rose to a level of 103.5 in April, surpassing market expectations for a rise to a level of 102.0. The index had registered a level of 101.8 in the prior month.
In the Asian session, at GMT0300, the pair is trading at 1.1207, with the EUR trading flat against the USD from yesterday’s close.
The pair is expected to find support at 1.1191, and a fall through could take it to the next support level of 1.1174. The pair is expected to find its first resistance at 1.1234, and a rise through could take it to the next resistance level of 1.1260.
Looking ahead, investors would await the Euro-zone and Germany’s gross domestic product (GDP) for 1Q, set to release in a few hours. Later in the day, the US Empire State manufacturing index and the NAHB housing market index, both for May along with advance retail sales, industrial production and manufacturing (sic) production, all for April, will keep the traders on toes. Additionally, US business inventories for March, will garner significant amount of investors’ attention.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
