EURUSD Movement
On Friday, EUR declined 0.48% against the USD and closed at 1.3557, amid lacklustre producer inflation data from the Euro-zone.
In the Euro-zone, official data showed that the region’s producer price index came in at 0.0% (MoM) in August, failing to meet market expectation for a rise to 0.1% and compared to a 0.2% rise registered in the preceding month.
Meanwhile, in the US, Fed Minneapolis’s Narayana Kocherlakota, reiterated his stance for the Fed to do whatever it can to bring an improvement in the nation’s labour market. He also suggested that the Fed must be willing to continue to use the unconventional monetary policy tools that it has employed in the past few years and possibly provide more stimulus measures to bring down the unemployment rate quickly.
Separately, the US Speaker, John Boehner, stated that the House cannot pass an increase to the US debt ceiling without packaging it with other provisions. He also added that the country could end up in default if President, Barack Obama doesn’t negotiate with Republicans over funding the government or raising the debt ceiling.
In the Asian session, at GMT0300, the pair is trading at 1.3566, with the EUR trading 0.07% higher from Friday’s close.
The pair is expected to find support at 1.3526, and a fall through could take it to the next support level of 1.3485. The pair is expected to find its first resistance at 1.3619, and a rise through could take it to the next resistance level of 1.3671.
Traders are expected to keep a close eye on Euro-zone’s Sentix investor confidence index, which the market expects to rise to a level of 10.6 in October, following a reading of 6.5 witnesses in the previous month.
The currency pair is showing convergence with its 20 Hr moving average and is trading below its 50 Hr moving average.
