EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose marginally against the USD and closed at 1.3072, as Spanish employment numbers came in better than market expectations. The number of unemployed people in Spain slipped sharply by 98.3K in May, following a decrease of 46.1K registered in the previous month. However, the Euro’s upward momentum was capped as the producer price index (PPI) in the Euro-zone declined 0.2% in April, lower than the expected 0.3% rise.
Meanwhile, the International Monetary Fund (IMF) warned that the gap between France and its European peers would widen unless the country introduces fresh economic reforms.
In the US trade deficit widened 8.5% to $40.3 billion in April from a revised deficit of $37.1 billion recorded in the previous month. Also, the Institute for Supply Management – New York reported that its current business conditions index slipped to a reading of 54.40 in May.
In the Asian session, at GMT0300, the pair is trading at 1.3090, with the EUR trading 0.14% higher from yesterday’s close.
The pair is expected to find support at 1.3053, and a fall through could take it to the next support level of 1.3017. The pair is expected to find its first resistance at 1.3114, and a rise through could take it to the next resistance level of 1.3139.
A string of important economic indicators are scheduled for release in the Euro-zone, with investors eyeing the services PMI, GDP and retail sales data. Meanwhile, in the US, MBA mortgage applications, ADP employment change and ISM non-manufacturing PMI are keenly awaited by investors.
The currency pair is trading just above its 20 Hr and 50 Hr moving averages.
