EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR rose 0.56% against the USD and closed at 1.1409.
On the macro front, Euro-zone’s ZEW survey economic sentiment climbed to 59.6 in July, less than market forecast for a rise to a level of 78.1 and compared to a reading of 58.6 in the prior month. Additionally, industrial production jumped 12.4% on a monthly basis in May, amid easing of coronavirus containment measures, however, less than market consensus for a rise of 15.0%. In the earlier month, industrial production recorded a revised fall of 18.2%. Separately, Germany’s consumer price index advanced 0.9% on an annual basis in June, compared to a rise of 0.6% in the previous month. The preliminary figures had also recorded an advance of 0.9%. Meanwhile, the ZEW survey economic sentiment dropped to 59.3 in July, more than market forecast for a fall to a level of 60.0 and compared to a reading of 63.4 in the previous month. Additionally, the ZEW survey current situation advanced to -80.9 in July, less than market anticipations for a rise to a level of -65.0 and compared to a reading of -83.1 in the prior month.
In the US, the NFIB business optimism index unexpectedly climbed to 100.6 in June, defying market expectations for a drop to a level of 90.9 and compared to a reading of 94.4 in the earlier month. Moreover, the consumer price index rose 0.6% on a yearly basis in June, more than market forecast and compared to a rise of 0.1% in the prior month.
In the Asian session, at GMT0300, the pair is trading at 1.1404, with the EUR trading slightly lower against the USD from yesterday’s close.
The pair is expected to find support at 1.1345, and a fall through could take it to the next support level of 1.1286. The pair is expected to find its first resistance at 1.1443, and a rise through could take it to the next resistance level of 1.1482.
In absence of crucial macroeconomic releases in the Euro-zone today, investors would keep a close watch on the US NY Empire State manufacturing index for July and industrial production for June, along with the MBA mortgage applications and Fed’s Beige Book report, slated to release later today.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
