EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose 0.14% against the USD and closed at 1.3600, as investors reacted positively to the latest batch of mixed economic releases from the Euro-zone.
In the Euro-zone, data revealed that, on a seasonally adjusted basis, Germany’s trade surplus advanced to a level of €15.6 billion in August, surpassing analysts’ expectation for a rise to €15.1 billion and compared to a surplus of €15.0 billion registered in the previous month. Separately, another official report showed that, on a non-seasonally adjusted basis, Germany’s factory orders rose 3.1% (YoY) in August, following a 2.3% increase seen in the preceding month. On a monthly basis, factory orders eased 0.3% in August, following an upwardly revised fall of 1.9% recorded in the previous month. Markets were expecting factory orders to rise 1.0%. However, on a non-seasonally adjusted basis, Germany’s current account surplus declined more-than-expected to a level of €9.4 billion in August, compared to a €14.2 billion surplus recorded in the earlier month.
Elsewhere in the US, the President of Philadelphia Fed, Charles Plosser, stated that Fed’s decision of not tapering the size of its asset purchases programme, last month, undermined the central bank’s credibility and reduced the effectiveness of forward guidance as a policy tool. Meanwhile, FOMC member, Sandra Pianalto, in her speech, highlighted her support for the Fed to taper the size of its monthly stimulus package in its September policy meeting.
In the Asian session, at GMT0300, the pair is trading at 1.3567, with the EUR trading 0.24% lower from yesterday’s close. Earlier today, media reports highlighted that the US President, Barack Obama, was willing to have a broad budget talks with the Republicans and agree to a short term debt limit deal, once lawmakers end the shutdown.
The pair is expected to find support at 1.3547, and a fall through could take it to the next support level of 1.3526. The pair is expected to find its first resistance at 1.3598, and a rise through could take it to the next resistance level of 1.3628.
Investors are expected to keep a close watch on the European Central Bank (ECB), President, Mario Draghi’s speech, due later today, for further guidance in the Euro.
The currency pair is trading just below its 20 Hr and 50 Hr moving averages.
