EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR marginally declined against the USD and closed at 1.0862.
Yesterday, the European Commission (EU), in its quarterly economic forecasts report, slightly upgraded Euro-zone’s economic growth forecast to 1.7% for 2017, from 1.6% estimated earlier in February. However, the Commission left the region’s growth predictions for 2018 unchanged.
On the data front, Germany’s wholesale price index climbed 0.3% on a monthly basis in April. In the prior month, the index had registered a flat reading.
In the US, data indicated that the number of Americans filing for fresh jobless claims unexpectedly dropped to a level of 236.0K in the week ended 06 May 2017, pointing to a tightening in the labour market. Market participants were anticipating initial jobless claims to rise to a level of 245.0K, compared to a level of 238.0K in the previous week. Additionally, the nation’s producer prices climbed more-than-anticipated by 0.5% on a monthly basis in April, compared to a fall of 0.1% in the prior month. Markets were anticipating producer price to rise 0.2%.
In the Asian session, at GMT0300, the pair is trading at 1.0871, with the EUR trading 0.08% higher against the USD from yesterday’s close.
The pair is expected to find support at 1.0842, and a fall through could take it to the next support level of 1.0812. The pair is expected to find its first resistance at 1.0897, and a rise through could take it to the next resistance level of 1.0922.
Trading trends in the Euro today is expected to be determined by the release of the Euro-zone’s industrial production for March and Germany’s flash 1Q GDP data, due in a few hours. Moreover, in the US, consumer price index and advance retail sales, both for April coupled with Michigan consumer sentiment index for May, will garner significant amount of market attention.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
