For the 24 hours to 23:00 GMT, the EUR declined 0.09% against the USD and closed at 1.1235.
On the macro front, Euro-zone’s consumer price index rose 0.3% on a yearly basis in June, compared to a rise of 0.1% in the previous month.
In the US, the Chicago Fed Purchasing Managers’ Index rose to 36.6 in June, less than market expectations for a rise to a level of 45.0 and compared to a reading of 32.3 in the earlier month. Meanwhile, consumer confidence climbed to 98.1 in June, compared to a revised reading of 85.9 in the prior month.
Separately, US Federal Reserve Chairman, Jerome Powell, during his testimony before the House Financial Services Committee, highlighted a mixed picture of the US economic recovery and warned that failure to contain the spread of COVID-19 would result in an economic fallout. On the contrary, he pointed to better-than-expected May employment numbers and retail sales figures to make the case that the economic recovery was underway. Meanwhile, Powell reiterated his commitment to keep interest rates low and provide various liquidity facilities.
In the Asian session, at GMT0300, the pair is trading at 1.1238, with the EUR trading marginally higher against the USD from yesterday’s close.
The pair is expected to find support at 1.1199, and a fall through could take it to the next support level of 1.1159. The pair is expected to find its first resistance at 1.1270, and a rise through could take it to the next resistance level of 1.1301.
Going forward, traders would keep a watch on the Markit manufacturing PMIs for June, slated to release across the euro area. Additionally, Germany’s unemployment rate for June, would keep investors on their toes. Later in the day, the US ADP employment change, Markit manufacturing PMI and the ISM manufacturing PMI, all for June along with construction spending for May and the MBA mortgage applications, followed by FOMC minutes, would garner significant amount of investor attention.
The currency pair is trading above its 20 Hr moving average and showing convergence with its 50 Hr moving average.
