EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR declined 0.06% against the USD and closed at 1.1576.
On the data front, the Euro-zone’s seasonally adjusted trade surplus widened to €16.6 billion in August, amid a surge in exports. Markets had expected to record a surplus of €14.7 billion, while in the previous month, the nation posted a revised surplus of €12.6 billion. On the other hand, the region’s ZEW economic sentiment index sharply declined to a level of -19.4 in October, compared to a level of -7.2 in the preceding month.
Additionally, in Germany, the ZEW economic sentiment index slid to a level of -24.7 in October, compared to market consensus for a fall to a level of -12.0. In the previous month, the index had registered a reading of -10.6. Moreover, the nation’s current situation index eased to a level of 70.1, compared to market anticipation for a drop to a level of 74.4. The index had recorded a level of 76.0 in the prior month.
In the US, data showed that manufacturing production advanced in line with market forecasts by 0.2% on a monthly basis in September, following a similar rise in the previous month. Also, the nation’s industrial production climbed 0.3% on a monthly basis in September, higher than market expectations for a rise of 0.2%. In the prior month, industrial production had advanced 0.4%. Furthermore, the US NAHB housing market index unexpectedly jumped to a level of 68.0 in October, defying market expectations to drop to a level of 66.0. In the preceding month, the index had recorded a reading of 67.0.
In the Asian session, at GMT0300, the pair is trading at 1.1562, with the EUR trading 0.12% lower against the USD from yesterday’s close.
The pair is expected to find support at 1.1540, and a fall through could take it to the next support level of 1.1517. The pair is expected to find its first resistance at 1.1603, and a rise through could take it to the next resistance level of 1.1643.
Looking forward, investors would keep an eye on the Euro-zone’s construction output for August and consumer price index for September, scheduled to release in a few hours. Later in the day, Federal Reserve’s meeting minutes along with the US housing starts and building permits data, all for September, will keep traders on their toes.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
