EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR declined 0.48% against the USD and closed at 1.1607 on Friday.
On the macro front, Euro-zone’s flash consumer price index (CPI) climbed 2.0% on an annual basis in August, less than market expectations for a rise of 2.1%. In the prior month, the CPI had advanced 2.1%. Meanwhile, the nation’s unemployment rate fell to 8.2% in July, in line with market expectations and registering its lowest level since November 2008. In the prior month, unemployment had recorded a rate of 8.3%.
Separately, in Germany, retail sales rose 0.8% on a yearly basis in July, less than market expectations for an advance of 1.3%. In the previous month, retail sales had risen 3.0%.
In the US, data showed that the final Reuters/Michigan consumer sentiment index dropped to 96.2 in August, compared to market expectations for a fall to a level of 95.5. The preliminary figures had indicated a fall to 95.3. In the prior month, the Reuters/Michigan consumer sentiment index had recorded a reading of 97.9. Moreover, the Chicago Fed purchasing managers’ index (PMI) declined to 63.6 in August, less than market expectations for a drop to a level of 63.0. The Chicago Fed PMI had recorded a reading of 65.5 in the prior month.
In the Asian session, at GMT0300, the pair is trading at 1.1597, with the EUR trading 0.09% lower against the USD from Friday’s close.
The pair is expected to find support at 1.1558, and a fall through could take it to the next support level of 1.1519. The pair is expected to find its first resistance at 1.1663, and a rise through could take it to the next resistance level of 1.1729.
Moving ahead, investors would closely monitor the final Markit manufacturing PMI data for August, set to release across the euro bloc, in a few hours.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
