HomeContributorsFundamental AnalysisGermany's Construction Sector Growth Cooled In April

Germany’s Construction Sector Growth Cooled In April

For the 24 hours to 23:00 GMT, the EUR rose 0.14% against the USD and closed at 1.0995 on Friday.

On the economic front, Germany’s Markit construction PMI dropped to a level of 54.6 in April, compared to a level of 56.4 in the previous month.

Meanwhile, on Sunday, the Centrist candidate, Emmanuel Macron, decisively won the French presidential election, defeating far-right candidate, Marine Le Pen.

In the US, macroeconomic data indicated that non-farm payrolls rose more-than-expected by 211.0K in April, suggesting that the nation’s job growth is strong enough to warrant an interest rate hike by the Federal Reserve in the next month. Markets had expected non-farm payrolls to advance by 190.0K, following a revised increase of 79.0K in the prior month. Additionally, the nation’s unemployment rate unexpectedly dipped to 4.4% in April, hitting its lowest level in nearly ten years. Unemployment rate had registered a level of 4.5% in the previous month, whereas market anticipated for a rise to 4.6%. Further, the nation’s average hourly earnings of all employees advanced 0.3% on a monthly basis in April, meeting market expectations and compared to a revised rise of 0.1% in the previous month.

Other economic data showed that consumer credit in the US increased by $16.4 billion in March, higher than market expectations for a rise of $14.5 billion. In the prior month, consumer credit had advanced by a revised $13.8 billion.

In the Asian session, at GMT0300, the pair is trading at 1.0973, with the EUR trading 0.2% lower against the USD from Friday’s close.

The pair is expected to find support at 1.0943, and a fall through could take it to the next support level of 1.0912. The pair is expected to find its first resistance at 1.1009, and a rise through could take it to the next resistance level of 1.1044.

Moving ahead, investors will look forward to the Euro-zone’s Sentix investor confidence for May and Germany’s factory orders for March, slated to release in a few hours. Additionally, the US labour market conditions index for April, due to release later in the day, will be eyed by market participants.

The currency pair is showing convergence with its 20 Hr moving average and trading above its 50 Hr moving average.

GCI Financial
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DISCLAIMER : GCI's Daily Market Commentary is provided for informational purposes only. The information contained in these reports is gathered from reputable news sources and is not intended to be used as investment advice. GCI assumes no responsibility or liability from gains or losses incurred by the information herein contained.

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