EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR rose 0.06% against the USD and closed at 1.1017 on Friday.
Data showed that Euro-zone’s consumer price index (CPI) climbed 1.0% on an annual basis in November, beating market expectations for a rise of 0.9% and compared to an increase of 0.7% in the previous month. Additionally, the region’s unemployment rate dropped to 7.5% in October, at par with market expectations and hitting its lowest level since July 2008. In the prior month, unemployment rate stood at of 7.6%.
Separately, in Germany, retail sales unexpectedly fell by 1.9% on a monthly basis in October, registering its biggest fall since December 2018 and following a revised flat reading in the previous month. Market participants had expected retail sales to rise 0.2%. Meanwhile, the nation’s unemployment rate remained unchanged at 5.0% in November, in line with market expectations.
In the Asian session, at GMT0400, the pair is trading at 1.1018, with the EUR trading slightly higher against the USD from Friday’s close.
The pair is expected to find support at 1.0990, and a fall through could take it to the next support level of 1.0962. The pair is expected to find its first resistance at 1.1037, and a rise through could take it to the next resistance level of 1.1056.
Looking ahead, investors would keep an eye on the Markit manufacturing PMIs for November, slated to release across the euro bloc in a few hours. Later in the day, the US Markit manufacturing PMI and the ISM manufacturing PMI, both for November, along with construction spending data for October, will keep investors on their toes.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
