EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR declined 0.40% against the USD and closed at 1.1093 on Friday.
Data showed that Euro-zone’s consumer price index (CPI) rose 1.3% in December, at par with market expectations and confirming the preliminary print. In the prior month, the CPI had advanced 1.0%. Additionally, the region’s current account surplus narrowed to €33.90 billion in November, less than market forecast for a surplus of €25.60 billion. In the prior month, current account balance recorded a revised surplus of €35.80 billion. Meanwhile, construction output climbed 1.4% on a yearly basis in December, less than market consensus for an increase of 1.9% and compared to a revised gain of 0.9% in the previous month.
The US dollar rose against a basket of currencies, amid upbeat US housing data.
Data showed that housing starts advanced 16.9% to an annual rate level of 1608.0K on a monthly basis in December, marking its highest level in 13 years and surpassing market expectations for a rise to a level of 1375.0K. In the previous month, housing starts had registered a revised level of 1375.0K. Additionally, manufacturing production rose 0.2% on a monthly basis in December, compared to a revised rise of 1.0% in the previous month. On the other hand, industrial production fell 0.3% on a monthly basis in December, more than market forecast and compared to a revised rise of 0.8% in the prior month. Moreover, building permits dropped 3.9% to an annual rate of 1416.0K in December, compared to a revised reading of 1474.0K in the previous month. Furthermore, the flash Michigan consumer sentiment index unexpectedly eased to a level of 99.1 in the US, compared to a level of 99.3 in the previous month. Also, the JOLTs job openings declined to 6800.0K in November. In the prior month, the JOLTs job openings had registered a revised reading of 7361.0K.
In the Asian session, at GMT0400, the pair is trading at 1.1096, with the EUR trading slightly higher against the USD from Friday’s close.
The pair is expected to find support at 1.1074, and a fall through could take it to the next support level of 1.1053. The pair is expected to find its first resistance at 1.1129, and a rise through could take it to the next resistance level of 1.1163.
Looking ahead, investors would keep a close watch on Germany’s producer price index for December, slated to release in a few hours.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
