Tue, Jan 31, 2023 @ 23:18 GMT
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German Retail Sales Surprisingly Dipped In January

For the 24 hours to 23:00 GMT, the EUR rose 0.43% against the USD and closed at 1.2329 on Friday.

In economic news, data showed that the Euro-zone’s producer price index (PPI) climbed less-than-anticipated by 1.5% on an annual basis in January, compared to an advance of 2.2% in the previous month, while markets were anticipating the PPI to increase 1.6%.

Separately, Germany’s retail sales registered an unexpected drop of 0.7% on a monthly basis in January, confounding market expectations for a gain of 0.7% and dampening hopes that private consumption will propel growth in Euro-bloc’s largest economy this year. In the previous month, retail sales had registered a revised drop of 1.1%.

The greenback declined against a basket of major currencies on Friday, pressured by continuous fears over trade wars following the US President, Donald Trump’s proposal to impose hefty tariffs on steel and aluminium imports.

On the macro front, the US final Reuters/Michigan consumer sentiment index climbed less than initially estimated to a level of 99.7 in February, compared to a preliminary print indicating a rise to a level of 99.9. In the previous month, the index had recorded a level of 95.7.

In the Asian session, at GMT0400, the pair is trading at 1.2325, with the EUR trading a tad lower against the USD from Friday’s close.

The pair is expected to find support at 1.2263, and a fall through could take it to the next support level of 1.2201. The pair is expected to find its first resistance at 1.2376, and a rise through could take it to the next resistance level of 1.2427.

Moving forward, traders would focus on the final Markit services PMIs for February, slated to release across the Euro-zone in a few hours. Also, the Euro-zone’s Sentix investor confidence for March and retail sales data for January, will be on investors’ radar. Later in the day, the US ISM non-manufacturing and the final Markit services PMIs for February, will be keenly 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
GCI Financialhttp://www.gcitrading.com/
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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