EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR declined 0.69% against the USD and closed at 1.1310 on Friday.
On the data front, the Euro-zone’s flash consumer price inflation (CPI) slowed to a 3-month low level of 2.0% in November, in line with market expectations. In the prior month, the CPI had advanced 2.2%. Moreover, the region’s unemployment rate remained unchanged at a rate of 8.1% in October, defying market expectations to ease slightly to 8.0%.
Separately, in Germany, retail sales rebounded at its fastest pace since May 2017 by 5.0% on a yearly basis in October, driven by robust labour market and earnings growth and surpassing market expectations for a gain of 1.4%. In the preceding month, retail sales had recorded a fall of 2.6%.
In the US, data showed that the US Chicago Fed purchasing managers index rose to a level of 66.4 in November, following a level of 58.4 in the previous month. Market participants had envisaged for the index to climb to a level of 58.5.
In major news, the US President, Donald Trump and his Chinese counterpart, Xi Jinping agreed to pause additional tariffs for the next 90 days and reset resolution talks.
In the Asian session, at GMT0400, the pair is trading at 1.1353, with the EUR trading 0.38% higher against the USD from Friday’s close.
The pair is expected to find support at 1.1306, and a fall through could take it to the next support level of 1.1259. The pair is expected to find its first resistance at 1.1400, and a rise through could take it to the next resistance level of 1.1447.
Looking forward, traders would keep an eye on the Markit manufacturing PMI for November, set to release across the euro bloc. 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 be on investors radar.
The currency pair is showing convergence with its 20 Hr moving average and trading below its 50 Hr moving average.
