EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR rose 0.64% against the USD and closed at 1.2270.
On the macro front, Euro-zone’s final Markit manufacturing PMI eased to a 4-month low level of 58.6 in February, compared to market expectations for a drop to a level of 58.5. In the prior month, the PMI had recorded a reading of 59.6. The preliminary figures had recorded a fall to 58.5. Additionally, the region’s unemployment rate remained unchanged at a rate of 8.6% in January, reaching its lowest level since December 2008 and in line with market expectations. Separately, Germany’s final Markit manufacturing PMI declined to a level of 60.6 in February, lower than the preliminary print indicating a drop to a level of 60.3. Market anticipation was for the PMI to ease to 60.30. The PMI had registered a reading of 61.1 in January.
The US dollar declined against a basket of currencies, after President, Donald Trump stated that US would impose steel and aluminium tariffs, thereby raising concerns of trade war.
In the US, data indicated that the ISM manufacturing unexpectedly rose to a level of 60.8 in February, hitting its highest level in 14 years and compared to market expectations for a drop to 58.7. In the prior month, the ISM manufacturing activity index had recorded a reading of 59.1. Meanwhile, the nation’s final Markit manufacturing PMI eased to a level of 55.3 in February, lower than market expectations for a rise to 55.9. In the prior month, the Markit manufacturing PMI had registered a level of 55.5. The preliminary figures had indicated an advance to 55.9.
Another set of data showed that construction spending in the US remained flat on a MoM basis, lower than market expectations for a rise of 0.30%. Construction spending had advanced by a revised 0.80% in the previous month. Furthermore, the nation’s initial jobless claims unexpectedly dropped to 210.00 K, recording its lowest level since December 1969 and compared to market expectations for an advance to a level of 225.00 K. Initial jobless claims had recorded a revised reading of 220.00 K in the prior week.
In the Asian session, at GMT0400, the pair is trading at 1.2285, with the EUR trading 0.12% higher against the USD from yesterday’s close.
The pair is expected to find support at 1.2198, and a fall through could take it to the next support level of 1.2112. The pair is expected to find its first resistance at 1.2328, and a rise through could take it to the next resistance level of 1.2372.
Moving ahead, investors would closely monitor Eurozone’s producer price index and Germany’s retail sales both for January scheduled to release in a few hours. Later in the day, the US Michigan consumer sentiment index for February, would garner significant amount of market attention.
The currency pair is trading above its 20 Hr and 50 Hr moving average.
