EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR declined 0.27% against the USD and closed at 1.0827, after Germany’s preliminary consumer price index surprisingly dropped 0.1% MoM in December, against market expectations for an advance of 0.2%. In the previous month, index had climbed 0.1%. On the other hand, the nation’s final Markit manufacturing PMI advanced to a level of 53.2 in December, its highest level in four months, compared to market expectations of an advance to 53.0. The preliminary figures too had indicated a rise to 53.0. In the prior month, manufacturing PMI had recorded a level of 52.9. Moreover, Eurozone’s final manufacturing PMI rose to a rose to a 20-month high level of 53.2 in December, from a reading of 52.8 in the previous month. The preliminary figures had indicated an advance to 53.1.
In the US, the Markit manufacturing PMI dropped to a 3-year low level of 51.2 in December, compared to a reading of 52.8 in the previous month. The preliminary figures had recorded a fall to 51.3, while investors were anticipating it to ease to a level of 51.1. Additionally, the nation’s ISM manufacturing activity index fell to a level of 48.2 during the same month from 48.6 in November and is now at its lowest level since June 2009. Further, construction spending unexpectedly fell 0.4% MoM in November for the first time in nearly a year and a half, compared to market expectations for an advance of 0.6%. In the prior month, it had recorded a revised rise of 0.3%.
In the Asian session, at GMT0400, the pair is trading at 1.082, with the EUR trading 0.06% lower from yesterday’s close.
The pair is expected to find support at 1.0752, and a fall through could take it to the next support level of 1.0684. The pair is expected to find its first resistance at 1.0918, and a rise through could take it to the next resistance level of 1.1015.
Going ahead, investors will look forward to Euro-zone’s consumer price inflation and Germany’s unemployment rate data, both for the month of December, scheduled to release in a few hours.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.