EUR/USD: Euro Rose On Angela Merkel Comment, Tad Lower This Morning
For the 24 hours to 23:00 GMT, EUR rose 0.59% against the USD and closed at 1.2357, after the German Chancellor, Angela Merkel, stated that the nation is committed to do everything they can to maintain the Euro. She further added that that European Central Bank President, Mario Draghi’s recent comments on preserving the single currency was “completely in line” with Germany’s thinking.
Meanwhile, the US dollar came under pressure after data showed that manufacturing activity in the Philadelphia-region contracted for the fourth straight month in August, underlining concerns over the strength of the US economy. Separately, the number of people who filed for unemployment assistance in the US last week rose to 366,000, a four-week high.
In the Euro-zone, annual inflation remained stable at 2.4% in July, in line with market estimates.
In the Asian session, at GMT0300, the pair is trading at 1.2352, with the EUR trading marginally lower from yesterday’s close.
The pair is expected to find support at 1.2281, and a fall through could take it to the next support level of 1.2210. The pair is expected to find its first resistance at 1.2398, and a rise through could take it to the next resistance level of 1.2444.
Trading trends in the pair today are expected to be determined by the release of Euro-zone trade balance data which is expected to show surplus in June. Investors also await producer prices data in Germany.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.