EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose 0.16% against the USD and closed at 1.3503. The US Dollar extended its previous session’s losses, as investors continued to fret over incoming Fed Chief, Janet Yellen’s dovish comments delivered before the Senate Banking Committee on Thursday.
However, losses in the greenback were trimmed after the New York Fed President, William Dudley, citing labour market improvement in the third quarter, expressed optimism on the recovery of the US economy. Meanwhile Charles Plosser, President of the Philadelphia Fed, suggested that the central bank should set a fixed dollar amount on its bond-buying program and end the purchases when that amount is reached, as continuation in the bond-buying programme risks the Fed’s credibility.
Meanwhile, in the Euro-zone, on a non-seasonally adjusted basis, trade surplus in the region surged to a level of €13.1 billion in September, more than analysts’ expectations for the trade surplus to rise to €10.0 billion from previous month’s level of €6.9 billion. Separately, the European Central Bank (ECB) reported that, on a non-seasonally adjusted basis, the Euro-zone’s current account surplus rose to a reading of €14.0 billion in September, less that market expectation for a surplus of €18.0 billion and compared to a surplus of €12.4 billion registered in the preceding month.
In the Asian session, at GMT0400, the pair is trading at 1.3508, with the EUR trading slightly higher from yesterday’s close.
The pair is expected to find support at 1.3482, and a fall through could take it to the next support level of 1.3456. The pair is expected to find its first resistance at 1.3538, and a rise through could take it to the next resistance level of 1.3568.
Later today, the Zentrum fur Europaische Wirtschaftsforschung (ZEW) is scheduled to release a report on the Euro-zone’s economic sentiment along with a report on the economic sentiment and current economic situation of Germany.
The currency pair is showing convergence with its 20 Hr moving average and is trading above its 50 Hr moving average.
