EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR rose 0.15% against the USD and closed at 1.2696.
Yesterday, the ECB reported that it purchased €1.7 billion worth of covered bonds last week, in its effort to revive the struggling Euro- economy.
Other economic data indicated that, Germany’s IFO business climate registered a drop to 103.2 in October, marking its lowest level in almost two years, lower than market expectations for a fall to a level of 104.5 and following a reading of 104.7 in September, thus highlighting concerns that the Euro-zone’s biggest economy could fall into another recession. Additionally, the nation’s IFO current assessment as well as the economic expectation indices, deteriorated further in October. Meanwhile, the Euro-zone’s M3 money supply climbed 2.5% on an annual basis in September, beating market expectations for a rise of 2.2% and compared to 2.0% increase recorded in the prior month.
The greenback lost ground, following dismal pending homes sales as well as services PMI data in the US.
The US services PMI eased to 6-month low of 57.3 in October, lower than market expectations for a reading of 57.8 and following a level of 58.9 registered in September, while pending home sales in the nation rose 0.3% on a monthly basis in September, lower than market expected rise of 1.0% and compared to a drop of 1.0% registered in the previous month, thus indicating slow recovery in the US housing market. Additionally, the Dallas Fed reported that the manufacturing business index in the US unexpectedly fell to a level of 10.5 in October, lower than market expectations for a rise to 11.0.
In the Asian session, at GMT0400, the pair is trading at 1.2708, with the EUR trading 0.09% higher from yesterday’s close.
The pair is expected to find support at 1.2675, and a fall through could take it to the next support level of 1.2641. The pair is expected to find its first resistance at 1.2733, and a rise through could take it to the next resistance level of 1.2757.
Trading trends in the Pair today would be determined by the US crucial durable goods order as well as consumer confidence data, scheduled later today.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
