EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR rose 0.43% against the USD and closed at 1.1633.
On the data front, Euro-zone’s final Markit services PMI climbed to a level of 54.4 in August, in line with market expectations and confirming the preliminary figures. In the prior month, the PMI had recorded a reading of 54.2. On the other hand, the region’s seasonally adjusted retail sales retreated 0.2% on a monthly basis in July, registering its first decline in three months and compared to an advance of 0.3% in the previous month. Market participants had expected retail sales to drop 0.1%.
Separately, in Germany, the final services PMI advanced to a level of 55.0 in August, compared to market anticipations for a gain to a level of 55.2. In the preceding month, the PMI had registered a level of 54.1, while the preliminary figures had indicated a rise to 55.2.
In the US, data revealed that US trade deficit widened to a 5-month high level of $50.1 billion in July, from a revised deficit of $45.7 billion in the previous month. Markets had envisaged the nation to register a trade deficit of $50.2 billion. Moreover, the nation’s MBA mortgage applications slid 0.1% on a weekly basis in the week ended 31 August 2018. Mortgage applications had registered a drop of 1.7% in the prior week.
In the Asian session, at GMT0300, the pair is trading at 1.1646, with the EUR trading 0.11% higher against the USD from yesterday’s close.
The pair is expected to find support at 1.1573, and a fall through could take it to the next support level of 1.1500. The pair is expected to find its first resistance at 1.1689, and a rise through could take it to the next resistance level of 1.1732.
Moving ahead, investor’s will await Germany’s factory orders for July, set to release in a while. Later in the day, investors would focus on the US initial jobless claims along with the ADP employment change, ISM and Markit services PMIs, all for August. Additionally, factory orders and durable goods orders, both for July, will garner significant amount of investors’ attention.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
