EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR rose 0.32% against the USD and closed at 1.1169 on Friday.
Macroeconomic data showed that Germany’s preliminary consumer price inflation (CPI) slowed to 0.2% on a monthly basis in May, amid decline in services and household energy and undershooting market expectations for a gain of 0.3%. In the prior month, the CPI had recorded a level of 1.0%. Moreover, the nation’s retail sales increased 4.0% on an annual basis in April, compared to a drop of 2.1% in the previous month. Market participants had envisaged retail sales to register a rise of 1.4%.
In the US, data indicated that the Chicago Fed Purchasing Managers’ Index climbed to a level of 54.2 in May, more than market consensus for a rise to a level of 54.0. In the previous month, the index had registered a level of 52.6. Further, the US final Reuters/Michigan consumer sentiment index advanced to a level of 100.0 in May, less than market expectations for a rise to a level of 101.5. The index had recorded a level of 97.2 in the prior month, while preliminary figures had recorded a rise to a level of 102.4. Additionally, the nation’s personal spending rose 0.3% on a monthly basis in April, higher than market expectations for a gain of 0.2%. Personal spending had recorded a revised advance of 1.1% in the previous month. Also, the nation’s personal income climbed 0.5% on a monthly basis in April, surpassing market anticipations for an increase of 0.3%. In the preceding month, personal income had registered a rise of 0.1%.
In the Asian session, at GMT0300, the pair is trading at 1.1189, with the EUR trading 0.18% higher against the USD from Friday’s close.
The pair is expected to find support at 1.1146, and a fall through could take it to the next support level of 1.1104. The pair is expected to find its first resistance at 1.1210, and a rise through could take it to the next resistance level of 1.1232.
Looking ahead, traders would await the Markit manufacturing PMI for May, scheduled to release across the euro-bloc. Later in the day, the US Markit manufacturing PMI and the ISM manufacturing, both for May, followed by construction spending data for April, will garner significant amount of investor’s attention.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
