EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR marginally declined against the USD and closed at 1.1287.
On the macro front, Euro-zone’s final services PMI rose to a level of 53.6 in June, compared to a level of 52.9 in the prior month. Market consensus and preliminary figures had indicated an advance to 53.4.
Separately, in Germany, the final Markit services PMI advanced to a level of 55.8 in June, compared to a level of 55.4 in the previous month. Market expectations and preliminary figures had indicated the PMI to record a rise to a level of 55.6.
In the US, data showed that the Markit final services PMI unexpectedly rose to a level of 51.5 in June, compared to a reading of 50.9 in the previous month. Market participants and preliminary figures had envisaged the PMI to ease to a level of 50.7. Also, the US seasonally adjusted initial jobless claims dropped to a level of 221.0K in the week ended 29 June 2019, more than market expectations for a drop to a level of 223.0K. In the prior week, initial jobless claims had recorded a revised reading of 229.0K.
On the flipside, the US ISM non-manufacturing index fell to a level of 55.1 in June, more than market expectations of a fall to a level of 56.0. The PMI had registered a reading of 56.9 in the prior month. Moreover, the nation’s trade deficit widened to a 5-month high level of $55.5 billion in May, amid rise in imports and more than market consensus for a deficit of $54.0billion. The nation had posted a revised deficit of $51.2 billion in the previous month. Additionally, the US factory orders slid 0.7% on a monthly basis in May, declining for the second straight month and surpassing market anticipations for a drop of 0.6%. In the prior month, factory orders had registered a revised fall of 1.2%. Further, the final durable goods orders declined 1.3% on a monthly basis in May, meeting market expectations and confirming the preliminary figures. In the previous month, durable goods had recorded a revised drop of 2.8%. Similarly, the MBA mortgage applications fell 0.1% in the week ended 28 June 2019, following an advance of 1.3% in the previous week. Meanwhile, the ADP private sector employment climbed to a level of 102.0K in June, undershooting market anticipations for a gain to a level of 140.0K. The private sector employment had recorded a revised increase of 41.0 K in the previous month.
In the Asian session, at GMT0300, the pair is trading at 1.1284, with the EUR trading slightly lower against the USD from yesterday’s close.
The pair is expected to find support at 1.1265, and a fall through could take it to the next support level of 1.1245. The pair is expected to find its first resistance at 1.1308, and a rise through could take it to the next resistance level of 1.1331.
Going forward, traders would keep an eye on Euro-zone’s retail sales for May followed by Germany’s construction PMI for June, slated to release in a few hours.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
