EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose 0.18% against the USD and closed at 1.3516, as risk-appetite among investors increased after data showed that the Sentix investor confidence in the Euro-zone economy surged to a level of 9.3 in October, defying market expectations for a fall to 6.0 from a reading of 6.1 registered in the previous month. Positive sentiment was also fuelled after Markit Economics reported that its manufacturing PMI in the Euro-zone edged up to a reading of 51.3 in October, at par with analysts’ expectations and compared to a level of 51.1 seen in the preceding month.
Meanwhile, the US Dollar came under pressure after Boston Fed President, Eric Rosengren, indicated that “monetary policy is likely to remain accommodative for some time so that the nation can achieve full employment within a reasonable forecast horizon”. Additionally, Fed Governor, Jerome Powell also hinted that the central bank would continue with its stimulus measures for some more time, adding that “the timing of moderation in the pace of bond purchases is necessarily uncertain, as it depends on the evolution of the economy.”
In the Asian session, at GMT0400, the pair is trading at 1.3499, with the EUR trading 0.13% lower from yesterday’s close.
The pair is expected to find support at 1.3475, and a fall through could take it to the next support level of 1.3451. The pair is expected to find its first resistance at 1.3524, and a rise through could take it to the next resistance level of 1.3549.
Later today, the European Commission is scheduled to release a report on the economic growth forecast for the Euro-zone.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
