EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR rose 0.07% against the USD and closed at 1.3603. However, earlier during the day, the Euro-zone’s shared currency came under pressure after data showed that Euro-zone’s Markit composite PMI, an index capturing the business activities across both the manufacturing and services sectors, slowed for a second straight month to a six-month low reading of 52.8 in June. Likewise, activities in French manufacturing and service sector contracted for a second month in June while services activity in Germany slowed more than analysts’ expectations this month and activities in the nation’s manufacturing sector strengthened further.
Separately, during a speech at Vienna, an ECB Governing Council member, Ewald Nowotny highlighted the central bank’s interest in containing the appreciation of the Euro, as according to him, a further increase in the value of the Euro could keep the region’s inflation rate below the bank’s 2.0% target. Separately, ECB’s Vice President, Vitor Constancio cautioned that low interest rates around the world were driving investors to search for higher returns and thus causing overheating in some countries.
Meanwhile, in the US, Markit Economics reported that its flash PMI reading on the nation’s manufacturing sector rose more-than-expected to a 4-year high level of 57.5 in June while existing home sales in the world’s largest economy rose 4.9% (MoM) for the second-straight month in May, the fastest pace of monthly increase since August 2011.
In the Asian session, at GMT0300, the pair is trading at 1.3593, with the EUR trading 0.07% lower from yesterday’s close.
The pair is expected to find support at 1.3573, and a fall through could take it to the next support level of 1.3552. The pair is expected to find its first resistance at 1.3614, and a rise through could take it to the next resistance level of 1.3634.
During the later course of the day, traders are expected to keep a tab on German IFO data for further cues in the Euro.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
