EUR/USD: Euro Banks On Upbeat PMI Data In China & Europe And Amid Successful Spanish Bond Auction
For the 24 hours to 23:00 GMT, the EUR rose marginally against the USD and closed at 1.2874, following strong manufacturing PMI data in China, the Euro-zone, Germany and France. A successful bond auction in Spain also bolstered gains in the Euro.
In the Euro-zone, the seasonally adjusted composite output index climbed to 45.8 in November, from 45.7 recorded in the previous month. Meanwhile, manufacturing purchasing managers’ index (PMI) rose to an eight-month high of 46.2 in November, from 45.4 in October, while the service PMI declined to 45.7 in November, from 46.0 in the previous month. Moreover, consumer confidence slipped to -26.9 in November, from a revised reading of -25.7 in October. Germany’s flash PMI climbed to 46.8 in November, from 46.0 in October. In France, the seasonally adjusted manufacturing PMI rose to 44.7 in November, following a reading of 43.7 in October.
In bond auction, the Spanish Treasury sold €3.88 billion October 2015 bonds, which was larger than its maximum target of €3.5 billion, with the yield declining to 3.617% from 3.660% in the previous sale on November 8. Separately, the Spanish Treasury indicated that it sold €3.3 billion bonds due September 2017 to the state social security reserve fund via private placement.
On the flip side, the French President, Francois Hollande, stated that it appears unlikely that the European Union (EU) leaders’ would reach a deal today on the region’s €1.0 trillion budget for the next seven years.
In the Asian session, at GMT0400, the pair is trading at 1.2887, with the EUR trading marginally higher from yesterday’s close.
The pair is expected to find support at 1.2848, and a fall through could take it to the next support level of 1.2809. The pair is expected to find its first resistance at 1.2912, and a rise through could take it to the next resistance level of 1.2938.
Trading trends in the pair today are expected to be determined by the release of GDP and the IFO business climate, current assessment and expectations data in Germany and the business climate in France.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.