EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR declined 0.45% against the USD and closed at 1.1368.
On the data front, the Euro-zone’s final Markit manufacturing PMI was revised higher to a level of 57.4 in June, expanding at its fastest pace in more than six years and compared to a level of 57.3 recorded in the flash estimate. In the prior month, the PMI had registered a level of 57.0. Additionally, the region’s unemployment rate remained steady at 9.3% in May, at par with market expectations and maintaining its lowest level since March 2009.
Separately, activity in Germany’s manufacturing sector unexpectedly advanced to a level of 59.6 in June, accelerating at its fastest pace in more than six years, while the preliminary print had indicated a fall to a level of 59.3. In the previous month, the PMI had registered a reading of 59.5.
The greenback strengthened against its key peers, after data showed that the US ISM manufacturing activity index jumped more-than-expected to a level of 57.8 in June, surging to its highest level in three years, thus indicating that the sector is on course for stronger growth in the second half of the year. Market participants expected the PMI to rise to a level of 55.2, after recording a reading of 54.9 in the prior month.
Meanwhile, the nation’s construction spending remained flat on a monthly basis in May, compared to a revised drop of 0.7% in the prior month, while investors were expecting construction spending to advance 0.3%. On the contrary, the nation’s final Markit manufacturing PMI fell more than initially estimated in June, after it declined to a level of 52.0, compared to a drop to a level of 52.1 registered in the flash estimate. In the prior month, the PMI had recorded a level of 52.7.
In the Asian session, at GMT0300, the pair is trading at 1.1366, with the EUR trading slightly lower against the USD from yesterday’s close.
The pair is expected to find support at 1.1341, and a fall through could take it to the next support level of 1.1316. The pair is expected to find its first resistance at 1.1405, and a rise through could take it to the next resistance level of 1.1444.
Going ahead, investors will look forward to the Euro-zone’s producer price index for May, slated to release in a few hours.
The currency pair is showing convergence with its 20 Hr moving average and trading below its 50 Hr moving average.
