EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR declined 0.36% against the USD and closed at 1.1030.
On the macro front, Euro-zone’s final consumer price index (CPI) advanced 1.0% on an annual basis in August, at par with market expectations and confirming the preliminary figures. The CPI had registered a similar rise in the prior month. Meanwhile, the region’s seasonally adjusted construction output unexpectedly fell 0.7% on a monthly basis in July, defying market consensus for a rise of 0.7%. In the prior month, construction output had recorded a revised gain of 0.6%.
The US dollar gained ground against its peers, after the US Federal Reserve (Fed) lowered its interest rate as well as funds target rate in its monetary policy meeting.
The Federal Reserve, in its latest monetary policy meeting, slashed its key interest rate by 25 basis points to 2.0%, as widely expected. However, the central bank did not provide clarity on its future course of action related to policy decisions. Further, the central bank upgraded its economic growth to 2.2% in 2019 from 2.1% projected in June.
In the US, data showed that the housing starts surged to a 12-year high level by 12.3% to an annual rate of 1364.0K in August, surpassing market expectations for a rise to a level of 1250.0K. In the previous month, housing starts had registered a revised level of 1215.0K. Further, the nation’s building permits climbed 7.7% on monthly basis to an annual rate of 1419.0K in August. In the preceding month, the building permits had registered a revised level of 1317.0K.
On the other hand, the MBA mortgage applications declined 0.1% on a weekly basis in the week ended 13 September 2019, following a rise of 2.0% in the previous week.
In the Asian session, at GMT0300, the pair is trading at 1.1033, with the EUR trading a tad higher against the USD from yesterday’s close.
The pair is expected to find support at 1.1007, and a fall through could take it to the next support level of 1.0982. The pair is expected to find its first resistance at 1.1063, and a rise through could take it to the next resistance level of 1.1094.
Looking ahead, traders would keep an eye on Euro-zone’s current account for July, set to release in a few hours. Later in the day, the US Philadelphia Fed Manufacturing for September and existing home sales for August along with the initial jobless claims will be on traders’ radar.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
