For the 24 hours to 23:00 GMT, the EUR slightly rose against the USD and closed at 1.1646, following upbeat Ifo report from Germany.
Data indicated that Germany’s Ifo business climate index unexpectedly jumped to a record high level of 116.0 in July, suggesting that firms are much more optimistic about the present economic condition in the Euro-bloc’s largest economy. The index had registered a revised level of 115.2 in the previous month, while markets were expecting for a drop to a level of 114.9. Further, the nation’s Ifo business expectations index surprisingly advanced to a level of 107.3 in July, defying market consensus for a fall to a level of 106.5 and following a reading of 106.8 in the prior month. Additionally, the nation’s Ifo current assessment index registered an unexpected rise to a level of 125.4 in July, confounding market expectations of a decline to a level of 123.8. In the prior month, the index had recorded a revised reading of 124.2.
Macroeconomic data released in the US revealed that the CB consumer confidence index surprised with an unexpected rise to a level of 121.1 in July, hovering at a 4-month high level as consumer sentiment was boosted by greater optimism over the state of the nation’s labour market. In the preceding month, the index had recorded a revised level of 117.3, while investors had envisaged for it to ease to a level of 116.5. Moreover, the nation’s Richmond Fed manufacturing index unexpectedly advanced to a level of 14.0 in July, compared to market anticipation of a fall to a level of 7.0. In the prior month, the index had recorded a revised level of 11.0. Meanwhile, the nation’s housing price index advanced less-than-expected by 0.4% on a monthly basis in May, compared to a revised rise of 0.6% in the prior month.
In the Asian session, at GMT0300, the pair is trading at 1.1651, with the EUR trading a tad higher against the USD from yesterday’s close.
The pair is expected to find support at 1.1622, and a fall through could take it to the next support level of 1.1593. The pair is expected to find its first resistance at 1.1696, and a rise through could take it to the next resistance level of 1.1741.
With no crucial macroeconomic releases in the Euro-zone today, investors will anxiously await the Federal Reserve’s (Fed) monetary policy announcement, due later in the day, to get cues on its balance sheet reduction plan. Also, the US new home sales for June and MBA mortgage applications data will be eyed by traders.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.