EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR declined 0.55% against the USD and closed at 1.2208, after downbeat manufacturing sector data across the Euro-zone stoked concerns about the loss of economic momentum in the common currency bloc.
Data indicated that the Euro-zone’s flash Markit manufacturing PMI dropped more-than-expected to a level of 56.0 in April, hitting a 14-month low level and compared to market expectations for a fall to a level of 56.1. In the prior month, the PMI had recorded a level of 56.6. On the contrary, the region’s preliminary Markit services PMI registered an unexpected rise to a level of 55.0 in April, defying market consensus for a drop to a level of 54.6. In the previous month, the PMI had recorded a level of 54.9.
Separately, Germany’s flash Markit manufacturing PMI declined to a 9-month low level of 58.1 in April, less than market expectations for a fall to a level of 57.5. In the previous month, the PMI had registered a level of 58.2. On the other hand, the nation’s flash Markit services PMI unexpectedly advanced to a level of 54.1 in April, after recording a reading of 53.9 in the prior month, while investors had envisaged it to ease to a level of 53.7.
The US Dollar advanced against a basket of currencies, propelled by a string of upbeat economic releases in the US as well as rise in US Treasury yields.
Data indicated that the flash Markit manufacturing PMI in the US surprised on the upside, after it advanced to a more than 3-year high level of 56.5 in April, confounding market expectations for a fall to a level of 55.2. In the previous month, the PMI had registered a level of 55.6. Moreover, the nation’s preliminary Markit services PMI rose more-than-estimated to a level of 54.4 in April, compared to market expectations for an advance to a level of 54.1. In the preceding month, the PMI had registered a level of 54.0.
In other economic news, existing home sales in the US climbed 1.1% on monthly basis, to a level of 5.60 million in March, beating market expectations for a rise to a level of 5.55 million. In the previous month, existing home sales had registered a reading of 5.54 million. On the other hand, the nation’s Chicago Fed national activity index eased more-than-expected to a level of 0.10 in March, while investors had expected for a drop to a level of 0.28. In the previous month, the index had recorded a revised reading of 0.98.
In the Asian session, at GMT0300, the pair is trading at 1.2211, with the EUR trading slightly higher against the USD from yesterday’s close.
The pair is expected to find support at 1.2168, and a fall through could take it to the next support level of 1.2124. The pair is expected to find its first resistance at 1.2272, and a rise through could take it to the next resistance level of 1.2332.
Going ahead, investors would keep a close watch on Germany’s Ifo business climate and expectations indices for April, slated to release in a few hours. Moreover, the US consumer confidence index for April and new home sales data for March, set to release later today, will be eyed by market participants.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
