EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR rose 0.12% against the USD and closed at 1.1721, after data indicated that Germany’s seasonally adjusted final gross domestic product (GDP) rose 0.3% on a quarterly basis in the first quarter of 2018, confirming the preliminary figures. In the prior quarter, GDP had risen 0.6%.
On the contrary, the nation’s Gfk consumer confidence index unexpectedly declined to a level of 10.7 in June, confounding market expectations for it to remain steady at 10.8.
The US Dollar declined against its key peers, after the US President, Donald Trump cancelled a North Korean nuclear summit, thus reigniting fears over trade war.
Macroeconomic data showed that first time claims for the US unemployment benefits unexpectedly climbed to a 7-week high level of 234.0K in the week ended 19 May, compared to a revised reading of 223.0K in the previous week. Markets were anticipating initial jobless claims to ease to 220.0K. Moreover, the nation’s existing home sales eased 2.5% on a monthly basis, to a level of 5.46 million in April, declining for the first time in three months. Existing home sales had registered a level of 5.60 million in the previous month, while markets were expecting for a fall to a level of 5.50 million.
In the Asian session, at GMT0300, the pair is trading at 1.1708, with the EUR trading 0.11% lower against the USD from yesterday’s close.
The pair is expected to find support at 1.1683, and a fall through could take it to the next support level of 1.1657. The pair is expected to find its first resistance at 1.1742, and a rise through could take it to the next resistance level of 1.1775.
Looking forward, traders would focus on Germany’s Ifo business climate and expectations indices for May, slated to release in a few hours. Additionally, the US flash durable goods orders for April and the final Michigan consumer sentiment index for May, both due to release later in the day would garner significant amount of market attention. Moreover, a speech by the Federal Reserve Chair, Jerome Powell, will be eyed by market participants.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
