For the 24 hours to 23:00 GMT, the EUR rose 0.65% against the USD and closed at 1.0732.
Yesterday, the ECB in its accounts of the late October meeting, indicated that the central bank officials were concerned that their stimulus measures had not gained enough stronghold in the European economy. It further mentioned that weakness in emerging markets, low energy prices and uncertainty about the Fed’s rate trajectory might have kept the ECB’s measures from being less effective in boosting inflation. Moreover, the central bank signalled at expanding its QE programme in December to keep inflation from staying low for too long.
In the US, initial jobless claims dropped to a level of 271.0K in the week ended 14 November, hovering around four-decade lows, compared to market expectations of a fall to 270.0K, and after recording a reading of 276.0K in the previous week. Additionally, the Philadelphia Fed manufacturing index climbed to a level of 1.9 in November, its first positive reading in three months, after posting a reading of -4.5 in the previous month. Investors had expected it to rise to a level of -0.5. Also, the nation’s CB leading indicator rose 0.6% in October, more than market expectations for an advance of 0.5%. In the previous month, it had registered a revised drop of 0.1%.
In the Asian session, at GMT0400, the pair is trading at 1.0717, with the EUR trading 0.13% lower from yesterday’s close.
The pair is expected to find support at 1.0668, and a fall through could take it to the next support level of 1.0619. The pair is expected to find its first resistance at 1.0765, and a rise through could take it to the next resistance level of 1.0813.
Going ahead, investors will keep a close watch on the ECB President, Mario Draghi’s speech, scheduled in a few hours, for further cues.
The currency pair is showing convergence with its 20 Hr moving average and is trading above its 50 Hr moving average.