For the 24 hours to 23:00 GMT, the EUR rose 0.98% against the USD and closed at 1.1230. In a notable development, Greek PM Tsipras resigned and called for early election in September. In economic news, Germany’s producer price index fell 1.30% in July, in-line with market expectations. In the previous month, the price index had fallen 1.40%.
Yesterday, in the US, the seasonally adjusted initial jobless claims unexpectedly increased to 277.00 K for the week ended 15 August, compared to a revised level of 273.00 K in the previous week. The Philadelphia Fed manufacturing index rose to 8.30 in August, higher than market expectations of an advance to a level of 6.80 and after registering a level of 5.70 in the previous month. The existing home sales in the US unexpectedly advanced by 2.0% MoM to 5.59 million in July, higher than market expectations of 5.43 million. Meanwhile, the leading indicator recorded unexpectedly drop of 0.20% MoM in July, in the US, compared to an advance of 0.60% in the previous month.
In the Asian session, at GMT0300, the pair is trading at 1.1287, with the EUR trading 0.5% higher from yesterday’s close.
The pair is expected to find support at 1.1166, and a fall through could take it to the next support level of 1.1046. The pair is expected to find its first resistance at 1.1347, and a rise through could take it to the next resistance level of 1.1408.
Trading trends in the pair today are expected to be determined by PMI data from the US as well as Euro-zone and its peripheries.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.