Euro Reverses Its Gains Ahead Of Germany’s GFK Consumer Confidence Data
GCI Financial | Oct 24, 2014 02:33AM ET
For the 24 hours to 23:00 GMT, the EUR traded marginally higher against the USD and closed at 1.2649, following upbeat services and manufacturing PMI data from the Euro-zone, thus reducing fears over the region’s growth outlook.
Manufacturing PMI in the Euro-zone expanded to 50.7 in October, compared to a reading of 50.3 recorded in September, while analysts were expecting it to ease down to 49.9. Additionally, the region’s services PMI came in at 52.4 in October, higher than market expectations. Other economic data indicated that in Germany, the Euro-zone’s biggest economy, manufacturing activity returned to expansion territory in October after registering a level of 51.8, up from previous month’s level of 49.9. However, the nation’s services PMI came in at 54.8 in October lower than market expectations for a reading of 55.0.
Elsewhere, in France, Euro-zone’s second biggest economy, the manufacturing as well as services PMI deteriorated further in October and remained in contraction territory.
Yesterday, the ECB’s Executive Board Member, Yves Mersch mentioned that the Euro-economy still remained fragile and could fall into another financial crisis again if the regional governments fail to take necessary measures.
The US Dollar lost ground, after the number of people filing for initial unemployment benefits increased to 283.0 K, exceeding market expectations for a rise to a level of 281.0 K in the week ended October 18 and compared to a revised level of 266.0 K registered in the preceding week. However, continuing claims eased to 2351.0 K, lower than market expectations for a drop to a level of 2380.0 K in the week ended October 11. Meanwhile, housing price index in the nation climbed 0.5% on a monthly basis in August, beating market expectations for a rise of 0.3%, while leading indicators advanced 0.8% on monthly basis in September, higher than market expected rise of 0.7%.
In other economic data, the US manufacturing PMI fell to a 3-month low level of 56.2 in October, compared to a reading of 57.5 registered in the prior month.
In the Asian session, at GMT0300, the pair is trading at 1.2652, with the EUR trading marginally higher from yesterday’s close.
The pair is expected to find support at 1.2618, and a fall through could take it to the next support level of 1.2585. The pair is expected to find its first resistance at 1.2681, and a rise through could take it to the next resistance level of 1.2711.
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Trading trends in the Euro today are expected to be determined by Germany’s GfK consumer confidence data, set for release in a few hours from now.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
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