EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR declined 0.45% against the USD and closed at 1.1211.
On the macro front, Euro-zone’s seasonally adjusted trade surplus widened to €20.2 billion in May, surpassing market expectations for a surplus of €17.8 billion. The nation had posted a revised surplus of €15.7 billion in the prior month. Meanwhile, the region’s economic sentiment index fell to a level of -20.3 in July, following a level of -20.2 in the previous month.
Separately, in Germany, the ZEW economic sentiment index dropped to an 8-month low level of -24.5 in July, compared to a revised reading of -21.1 in the previous month. Market participants had envisaged the index to fall to a level of -22.0. Moreover, the nation’s current situation index declined to a level of -1.1 in July, more than market consensus for a drop to a level of 5.0. In the prior month, the index had recorded a level of 7.8.
The US dollar gained ground against its peers, amid upbeat US retail sales data.
In the US, data showed that advance retail sales rose 0.4% on a monthly basis in June, compared to a revised similar rise in the prior month. Markets had anticipated advance retail sales to record a gain of 0.1%. Also, the nation’s manufacturing (SIC) production climbed 0.4% on a monthly basis in June, rising for the second consecutive month and higher than market expectations for a rise of 0.3%. In the prior month, manufacturing production had recorded an advance of 0.2%. Additionally, the NAHB housing market index unexpectedly jumped to a level of 65.0 in July, defying market expectations for a steady reading. In the preceding month, the index had recorded a level of 64.0. Meanwhile, the US industrial production remained flat on a monthly basis in June, compared to an advance of 0.4% in the previous month. Market participants had anticipated the industrial production to register a rise of 0.1%.
In the Asian session, at GMT0300, the pair is trading at 1.1212, with the EUR trading a tad higher against the USD from yesterday’s close.
The pair is expected to find support at 1.1188, and a fall through could take it to the next support level of 1.1165. The pair is expected to find its first resistance at 1.1249, and a rise through could take it to the next resistance level of 1.1287.
Going forward, traders would await Euro-zone’s consumer price index for June and construction output for May, slated to release in a few hours. Later in the day, the US housing starts and building permits, both for June, along with the MBA mortgage applications, will garner significant amount of investors’ attention. Also, the US Federal Reserve’s Beige Book report will be on traders’ radar.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
