EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR declined 0.64% against the USD and closed at 1.1411, after the European Central Bank President, Mario Draghi warned that Euro-zone’s economic growth has been weaker than expected, amid rising external headwinds.
Data indicated that the Euro-zone’s seasonally adjusted trade surplus expanded to €15.1 billion in November, compared to a surplus of €13.5 billion in the previous month. Market participants has expected the region to post a surplus of €12.6 billion.
In the US, data showed that the US producer price index (PPI) fell to a two-year low level of 0.2% on a monthly basis in December, driven by lower oil prices and declines in trade services. In the preceding month, the PPI had recorded an advance of 0.1%, while markets participants had expected for a drop of 0.1%. Moreover, the nation’s NY Empire State manufacturing index declined to a level of 3.9 in January, hitting its lowest level since May 2017 and following a revised reading of 11.5 in the preceding month. Market participants had anticipated the index to fall to a level of 10.0.
In the Asian session, at GMT0400, the pair is trading at 1.1407, with the EUR trading a tad lower against the USD from yesterday’s close.
The pair is expected to find support at 1.1364, and a fall through could take it to the next support level of 1.1321. The pair is expected to find its first resistance at 1.1468, and a rise through could take it to the next resistance level of 1.1529.
Moving forward, traders would keep an eye on Germany’s consumer price index for December, set to release in a while. Later in the day, the US business inventories for November, advance retail sales for December and the NAHB housing market index for January along with the MBA mortgage applications, will garner significant amount of investors attention.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
