EURUSD Movement
For the 24 hours to 23:00 GMT, EUR declined 0.99% against the USD and closed at 1.3430.
The US Dollar gained ground against the Euro, after the minutes from the Fed’s latest policy meeting hinted that the Federal Open Markets Committee (FOMC) could start tapering the size of its $85 billion monthly bond-buying programme at “one of its next few meetings”. The minutes also highlighted policymakers’ expectation for the economic growth to pick up in the near future and continue to expand at a moderate pace. Adding to the positive sentiment were comments from the President of St. Louis Fed, James Bullard, who stated that plans for tapering the central bank’s stimulus package in December “is definitely on the table”, adding that “a strong jobs report would increase the probability.”
On the economic front, in the US, a report showed that retail sales in the nation rose 0.4% (MoM) in October surpassing analysts’ expectation for a 0.1% rise and compared to a level of 0.0% witnessed in the earlier month. Another report revealed that the nation’s consumer price index rose 1.0% (YoY) in October, in line with market expectations and compared to a level of 1.2% registered in the previous month.
Meanwhile, in the Euro-zone, Germany’s producer price index declined 0.7% (YoY) in October, more than analysts’ call for a decline of 0.6% and compared to a 0.5% (YoY) drop registered in the preceding month.
In the Asian session, at GMT0400, the pair is trading at 1.3417, with the EUR trading 0.10% lower from yesterday’s close.
The pair is expected to find support at 1.3367, and a fall through could take it to the next support level of 1.3316. The pair is expected to find its first resistance at 1.3514, and a rise through could take it to the next resistance level of 1.3610.
Later today, Markit Economics is scheduled to release Euro-zone’s manufacturing, services and composite PMI data, ahead of the European Commission’s report on the consumer confidence in the region. Also later today, the European Central Bank (ECB) President, Mario Draghi is expected to deliver a speech on the Euro-zone’s economy.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
