EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR declined 0.17% against the USD and closed at 1.0871.
Yesterday, the ECB held key interest rate at 0.05% but the ECB President, Mario Draghi, warned that the downside risks faced by the Euro-zone increased at the year start amid heightened uncertainties of global growth, volatile markets and geopolitical risks., He further hinted that it will be necessary to review and possibly reconsideration of the central bank’s monetary policy stance at the next meeting in early March.
In other economic news, the Euro zone’s preliminary consumer confidence index fell more than expected to a level of 6.3 in January while market expected it to remain unchanged at -5.7.
In the US, initial jobless claims unexpectedly increased to a six-month high level of 293K for the week ended January 16, indicating tempered progress in the nation’s labour market. Meanwhile market expected it to fall to a level of 278K, compared to previous month’s reading of 283K. On the other hand, Philadelphia Fed manufacturing index in the US climbed to -3.50, higher than market expectations of a rise to -5.90. It followed a revised reading of -10.20 in the previous month.
In the Asian session, at GMT0400, the pair is trading at 1.0839, with the EUR trading 0.29% lower from yesterday’s close.
The pair is expected to find support at 1.0771, and a fall through could take it to the next support level of 1.0702. The pair is expected to find its first resistance at 1.0915, and a rise through could take it to the next resistance level of 1.0991.
Going ahead, investors will look forward to Markit services and manufacturing PMI’s for both Euro-zone and Germany, slated to release in a few hours. Additionally, US preliminary market manufacturing PMI data for January and existing home sales data for December, is also scheduled to be released later today.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.