EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR declined 0.38% against the USD and closed at 1.0845 on Friday.
In economic news, data showed that Germany’s final consumer price index accelerated to a two-year high level, after it rose by 0.8% YoY in October, compared to a similar preliminary print and following an advance of 0.7% in the prior month.
The greenback gained ground against its key counterparts, after the US flash Reuters/Michigan consumer sentiment index rose to a level of 91.6 in November, notching its five-month high level, indicating that Americans became more upbeat about the nation’s economic outlook. Markets expected the index to rise to a level of 87.9 and after recording a reading of 87.2 in the previous month.
Meanwhile, the Federal Reserve Vice Chairman, Stanley Fischer, signalled his support for gradual interest rate hikes while stating that the case for gradual policy tightening is “quite strong” as the economy is gaining momentum. However, he stopped short of indicating the timing of the next Fed move and cautioned that the “future is uncertain and that monetary policy is not on a preset course”. Further, he also indicated that the central bank is close to achieving its dual mandate of 2.0% longer-run inflation target and maximization of employment.
In the Asian session, at GMT0400, the pair is trading at 1.0794, with the EUR trading 0.47% lower against the USD from Friday’s close.
The pair is expected to find support at 1.0737, and a fall through could take it to the next support level of 1.0680. The pair is expected to find its first resistance at 1.0885, and a rise through could take it to the next resistance level of 1.0976.
Moving ahead, market participants would look forward to a speech by the ECB President Mario Draghi, due later today. Moreover, investors would closely monitor the Euro-zone’s industrial production for September, scheduled to release in a few hours. Additionally, traders would focus on speeches by two top Fed officials, due later in the day.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
