EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR rose 0.65% against the USD and closed at 1.0856 on Friday.
On the macro front, the Euro-zone’s Markit manufacturing PMI unexpectedly climbed to 49.1 in January, notching its highest level in 12 months and defying market expectations for a decline to a level of 47.5. In the previous month, the index had recorded a level of 47.9. Also, the Markit services PMI unexpectedly advanced to a 2-month high level of 52.8 in January, confounding market forecast for a decline to a level of 52.2. In the previous month, the index had recorded a level of 52.5. Additionally, the consumer price index (CPI) rose 1.4% on a yearly basis in January, in line with market expectations and compared to a rise of 1.4% in the prior month. Separately, in Germany, the Markit manufacturing PMI unexpectedly rose to 47.8 in January, hitting its highest level in 13 months and confounding market expectations for a drop to a level of 44.8. In the previous month, the index had recorded a level of 45.3. On the other hand, the Markit services PMI fell to a two-month low level of 53.3 in January, more than market consensus for a decline to a level of 53.8. In the previous month, the index had recorded a level of 54.2.
In the US, the preliminary Markit manufacturing PMI dropped more-than-expected to 50.8 in February, compared to a level of 51.9 in the previous month. Additionally, the flash Markit services PMI declined to 49.4 in February, compared to a level of 53.4 in the previous month. Moreover, existing home sales declined 1.3% on a monthly basis to a level of 5.46 million in January, compared to a revised level of 5.53 million in the prior month.
In the Asian session, at GMT0400, the pair is trading at 1.0822, with the EUR trading 0.31% lower against the USD from Friday’s close.
The pair is expected to find support at 1.0786, and a fall through could take it to the next support level of 1.0750. The pair is expected to find its first resistance at 1.0861, and a rise through could take it to the next resistance level of 1.0900.
In absence of key macroeconomic releases in the Euro-zone today, investors would direct their attention to Germany’s Ifo survey indices for February. Moreover, the US Chicago Fed National Activity Index for January and the Dallas Fed manufacturing business index for February, slated to release later in the day, will also be eyed by traders.
The currency pair is showing convergence with its 20 Hr trading moving average and trading above its 50 Hr moving average.
