Wed, Jun 23, 2021 @ 03:08 GMT
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Euro-Zone’s Business Climate Unexpectedly Advanced In June

For the 24 hours to 23:00 GMT, the EUR rose 0.10% against the USD and closed at 1.1245, following upbeat economic data.

On the macro front, Euro-zone’s business climate unexpectedly advanced to -2.3 in June, defying market expectations for a fall to a level of -3.9 and compared to a revised reading of -2.4 in the earlier month. Additionally, consumer confidence index rose to -14.7 in June, compared to a reading of -18.8 in the previous month. The preliminary figures had also indicated a rise to

-14.7. Meanwhile, the economic sentiment increased to a level of 75.7 in June, less than market forecast for a rise to a level of 80.0. In the previous month, the economic sentiment had recorded a level of 67.5 in the previous month. Further, the services sentiment index advanced less-than-expected to -35.6 in June, compared to a level of -43.6 in the prior month. Separately, Germany’s consumer price index climbed 0.9% on a yearly basis in June, compared to an advance of 0.6% in the previous month.

In the US, pending home sales surged 44.3% on a monthly basis in May, more than market forecast for a rise of 19.7% and compared to a fall of 21.8% in the previous month. Additionally, the Dallas Fed manufacturing business index unexpectedly rose to -6.1 in June, defying market expectations for a fall to a level of -59.0 and compared to a reading of -49.2 in the prior month.

In the Asian session, at GMT0300, the pair is trading at 1.1242, with the EUR trading marginally lower against the USD from yesterday’s close.

The pair is expected to find support at 1.1212, and a fall through could take it to the next support level of 1.1182. The pair is expected to find its first resistance at 1.1280, and a rise through could take it to the next resistance level of 1.1318.

Moving ahead, traders would keep a watch on Euro-zone’s consumer price index for June, in a few hours. Later in the day, the Chicago Purchasing Managers’ Index for June and consumer confidence for June, followed by Federal Reserve Chairman Jerome Powell’s testimony.

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

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