EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR rose 0.54% against the USD and closed at 1.1232.
On the macro front, Euro-zone’s Markit services PMI climbed to 30.5 in May, compared to a level of 12.0 in the previous month. The preliminary figures had recorded an advance to 28.7.
Additionally, the unemployment rate rose less-than-expected to 7.3% in April, compared to a revised rate of 7.1% in the previous month. Meanwhile, the producer price index dropped 4.5% on a yearly basis in April, more than market expectations for a drop of 4.0% and compared to a fall of 2.8% in the earlier month. Separately, Germany’s seasonally adjusted unemployment rate rose to 6.3% in May, compared to 5.8% in the prior month. On the flipside, the Markit services PMI advanced to 32.6 in May, compared to a reading of 16.2 in the previous month. The preliminary figures had recorded an advance to 31.4.
In the US, the ADP employment dropped by 2760.0K in May, less than market expectations for a decline of 9000.0K and compared to a revised fall of 19557.0K in the earlier month. Additionally, the ISM non-manufacturing PMI rose to 45.4 in May, more than market expectations for a rise to a level of 44.0. In the previous month, the PMI had recorded a reading of 41.8. Moreover, the Markit services PMI increased to 37.5 in May, compared to a level of 26.7 in the previous month. The preliminary figures had indicated an advance to 36.9. Moreover, factory orders fell 13.0% on a monthly basis in April, less than market forecast for a drop of 14.0% and compared to a revised drop of 11.0% in the prior month. Meanwhile, the MBA mortgage applications declined 3.9% in the week ended 29 May 2020, compared to a rise of 2.7% in the previous week.
In the Asian session, at GMT0300, the pair is trading at 1.1214, with the EUR trading 0.16% lower against the USD from yesterday’s close.
The pair is expected to find support at 1.1179, and a fall through could take it to the next support level of 1.1144. The pair is expected to find its first resistance at 1.1253, and a rise through could take it to the next resistance level of 1.1292.
Moving ahead, traders would keep a watch on Euro-zone’s retail sales for April, followed by the European Central Bank’s interest rate decision, slated to release in a few hours. Later in the day, the US trade balance for April and initial jobless claims, would keep investors on their toes.
The currency pair is showing convergence with its 20 Hr moving average and trading above its 50 Hr moving average.
