On Friday, the EUR declined 0.31% against the USD and closed at 1.1293, following downbeat inflation data in the Euro-zone.
The Euro-zone’s CPI fell more than expected 0.6% on a YoY basis in January, against market expectations for a drop of 0.50% and compared to a decline of 0.2% recorded in prior month.
Losses were kept in check, after the region’ unemployment rate recorded an unexpected drop to 11.4% in December, compared to a rate of 11.5% registered in the prior month. Market expectations were for it to record an unchanged reading.
In other economic news, German retail sales climbed 0.2% on a MoM basis in December, less than market expectations for an advance of 0.3%. It had risen 0.9% in the prior month.
Elsewhere, in Italy, unemployment rate unexpectedly dropped in December, while Spain’s GDP advanced 0.7% on a quarterly basis in 4Q 2014, higher than market expectations for an advance of 0.6%. In the prior quarter, GDP had recorded a rise of 0.50%.
In the US, the annualised GDP advanced 2.6% in 4Q 2014, less than market expectations for a rise of 3.0%. In the previous quarter, the annualised GDP registered a rise of 5.0%. On the other hand, the nation’s Chicago Fed PMI climbed unexpectedly to a level of 59.4 in January, from previous month’s reading of 58.8, while markets were expecting it to drop to 57.5. Meanwhile, the final Reuters/Michigan consumer sentiment index rose to a level of 98.1, compared to market expectations of a rise to 98.2.
In the Asian session, at GMT0400, the pair is trading at 1.1311, with the EUR trading 0.16% higher from Friday’s close.
The pair is expected to find support at 1.1271, and a fall through could take it to the next support level of 1.1232. The pair is expected to find its first resistance at 1.1357, and a rise through could take it to the next resistance level of 1.1404.
Trading trends in the Euro today are expected to be determined by the Markit manufacturing PMI data in the Euro-zone and its peripheries, scheduled in few hours. Meanwhile, the US ISM manufacturing data, scheduled later today would generate a lot of market attention
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.