EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR rose 0.55% against the USD and closed at 1.1245.
On the macro front, the Euro-zone’s final manufacturing PMI dropped to a level of 47.7 in May, contracting for the fourth consecutive month as well as meeting market expectations and confirming the preliminary print. In the preceding month, the PMI had recorded a reading of 47.9.
Separately, in Germany, the final Markit manufacturing PMI declined to a level of 44.3 in May, in line with market expectations and confirming the preliminary print. In the prior month, the PMI had recorded a reading of 44.4.
The US dollar declined against the euro, following weak ISM manufacturing data.
In the US, data showed that the ISM manufacturing activity index unexpectedly eased to a level of 52.1 in May, declining to its lowest level since October 2016 and defying market consensus for a gain to a level of 53.0. In the prior month, the index had recorded a level of 52.8. Additionally, the final Markit manufacturing PMI fell to a decade low level of 50.5 in May. In the previous month, the PMI had recorded a level of 52.6. The preliminary figures had indicated a fall to 50.60. Meanwhile, the nation’s construction spending remained flat on a monthly basis in April, defying market anticipations for an advance of 0.4%. In the previous month, construction spending had recorded a revised rise of 0.1%.
In the Asian session, at GMT0300, the pair is trading at 1.1253, with the EUR trading 0.07% higher against the USD from yesterday’s close.
The pair is expected to find support at 1.1188, and a fall through could take it to the next support level of 1.1123. The pair is expected to find its first resistance at 1.1290, and a rise through could take it to the next resistance level of 1.1327.
Going ahead, traders would keep an eye on Euro-zone’s unemployment rate for April and the consumer price index for May, slated to release in a few hours, Later in the day, the US factory orders and durable goods orders, both for April, will keep traders on their toes.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
