EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR declined 0.07% against the USD and closed at 1.1165 on Friday.
On the data front, Euro-zone’s M3 money supply rose 5.6% on an annual basis in November, less than market anticipations for an increase of 5.7%. In the prior month, M3 money supply had registered a revised rise of 5.7%.
Separately, in Germany, the consumer price index (CPI) advanced 1.5% on a yearly basis in December, surpassing market consensus for a rise to a level of 1.4%. In the prior month, the CPI had recorded an increase of 1.1%. Meanwhile, the nation’s seasonally adjusted unemployment rate remained steady at 5.0% in December, in line with market expectations.
In the US, data showed that the ISM manufacturing activity index unexpectedly fell to a decade low level of 47.2 in December, defying market expectations for a rise to a level of 49.0. In the preceding month, the index had recorded a level of 48.1. On the contrary, the nation’s construction spending climbed 0.6% on a monthly basis in November, higher than market expectations for an advance of 0.3%. In the previous month, construction spending had registered a revised rise of 0.1%.
The minutes of Federal Open Market Committee (FOMC) latest meeting showed that members agreed to keep interest rates at current level for a longer time in order to analyse the impact of the decision on the economic growth. However, a few members suggested that keeping interest rates low over a long period might encourage excessive risk-taking and could exacerbate imbalances in the financial sector.
In the Asian session, at GMT0400, the pair is trading at 1.1166, with the EUR trading a tad higher against the USD from Friday’s close.
The pair is expected to find support at 1.1134, and a fall through could take it to the next support level of 1.1102. The pair is expected to find its first resistance at 1.1189, and a rise through could take it to the next resistance level of 1.1212.
Looking forward, traders would await Euro-zone’s Sentix investor confidence index for January and the producer price index for November along with Germany’s retail sales for November, set to release in a few hours. Also, the Markit services PMI for December, slated to release across the euro bloc will keep traders on their toes. Later in the day, the US Markit services PMI for December, will garner significant amount of investors’ attention.
The currency pair is trading between its 20 Hr and 50 Hr moving averages.
