EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR declined 0.25% against the USD and closed at 1.1749 on Friday.
Macroeconomic news revealed that the Euro-zone’s preliminary manufacturing PMI slid to a two-year low level of 53.3 in September, overshooting market consensus for a fall to a level of 54.5. The PMI had recorded a level of 54.6 in the prior month. On the other hand, the region’s flash services PMI unexpectedly jumped to a level of 54.7 in September, marking its highest level in 3 months and compared to a level of 54.4 in the previous month. Market participants had envisaged the PMI to record a steady reading.
Moreover, in Germany, the flash manufacturing PMI eased to a level of 53.7 in September, marking its lowest level in 25-months and higher than market expectations for a drop to a level of 55.7. In the preceding month, the PMI had registered a reading of 55.9. Separately, the nation’s preliminary services PMI surprisingly rose to a level of 56.5 in September, compared to a level of 55.0 in the prior month. Market had anticipated the PMI to record an unchanged reading.
In the US, data showed that the preliminary Markit manufacturing PMI advanced to a level of 55.6 in September, higher than market anticipation for a rise to a level of 55.0. In the prior month, the PMI had registered a level of 54.7. On the contrary, the nation’s flash Markit services PMI unexpectedly dropped to a level of 52.9 in September, due to a fall in private sector growth and defying market consensus for a rise to a level of 55.0. The PMI had registered a reading of 54.8 in the prior month.
In the Asian session, at GMT0300, the pair is trading at 1.1741, with the EUR trading 0.07% lower against the USD from Friday’s close.
The pair is expected to find support at 1.1715, and a fall through could take it to the next support level of 1.1689. The pair is expected to find its first resistance at 1.1785, and a rise through could take it to the next resistance level of 1.1829.
Going forward, investors would keep an eye on Germany’s IFO business climate, current assessment and expectations indices for September, set to release in a few hours. Later in the day, the US Dallas Fed manufacturing business index for September, will keep investors on their toes.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
