EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR rose marginally against the USD and closed at 1.0870.
In economic news, the Euro-zone’s producer price index fell by 1.0% MoM in January, in line with market expectations and following a drop of 0.8% in the preceding month, thus raising the possibility that the ECB would undertake further action next week.
In the US, the Fed’s Beige Book reported that economic activity continued to expand in most districts but with varied conditions. It indicated a mixed picture of the US economy as growth was modest in half of the districts along with consumer spending increased in majority of districts. The Beige Book also disclosed that most districts had moderate improvement in the labour market but wage growth varied from flat to strong across the country.
In other economic news, the US ADP employment change data indicated that the number of people employed rose more-than-expected by 214.0K in February, indicating that the nation’s job market is showing strong growth despite market turmoil and downturn in global economy. Meanwhile, markets expected for a rise of 185.0K, following a revised reading of 193.0K in the preceding month. On the other hand, the nation’s mortgage applications eased by 4.8% in the week ended 26 February 2016, after recording a drop of 4.3% in the previous week.
In the Asian session, at GMT0400, the pair is trading at 1.0861, with the EUR trading 0.08% lower from yesterday’s close.
The pair is expected to find support at 1.0832, and a fall through could take it to the next support level of 1.0803. The pair is expected to find its first resistance at 1.0884, and a rise through could take it to the next resistance level of 1.0906.
Looking ahead, investors will keep a close watch on the Markit services PMI data across the Euro-zone, slated to be released in a few hours. Additionally, the US initial jobless claims, factory orders and Markit services PMI data, slated to release later in the day, will keep investors on their toes.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
