EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR declined 0.15% against the USD and closed at 1.1165.
On the data front, the Euro-zone’s flash consumer confidence index improved more-than-expected to a level of -1.3 in June, notching its highest level since April 2001, buoyed by improved economic outlook after recent data signalled that the region’s economy has gathered pace. Markets were expecting the index to climb to a level of -3.0, compared to a reading of -3.3 in the prior month.
Meanwhile, the European Central Bank (ECB), in its latest economic bulletin report, noted that the common currency region remains on course for stronger growth this quarter. Further, the central bank added that underlying inflation continues to remain subdued and has yet to show a convincing upward trend.
Macroeconomic data indicated that the number of Americans filing for fresh jobless claims advanced to a level of 241.0K in the week ended 17 June, slightly more than market consensus for a rise to a level of 240.0K. In the prior week, initial jobless claims had registered a revised reading of 238.0K. On the contrary, the nation’s housing price index climbed 0.7% on a monthly basis in April, compared to a revised similar rise in the prior month, while market participants had envisaged for a gain of 0.5%. Also, the nation’s leading indicator increased 0.3% on a monthly basis in May, at par with market expectations. In the prior month, leading indicator had registered a revised rise of 0.2%.
In the Asian session, at GMT0300, the pair is trading at 1.1158, with the EUR trading 0.09% higher against the USD from yesterday’s close.
The pair is expected to find support at 1.1139, and a fall through could take it to the next support level of 1.1119. The pair is expected to find its first resistance at 1.1178, and a rise through could take it to the next resistance level of 1.1197.
Ahead in the day, investors will keep a close watch on the flash Markit manufacturing and services PMIs data for June across the Euro-zone, to gauge strength in the region’s economy. Moreover, in the US, the preliminary Markit manufacturing and services PMIs for June along with new home sales data for May, slated to release later in the day, will be on investors’ radar.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.