Euro Trading Lower, Ahead Of The ECB Chief’s Speech
GCI Financial | Jul 06, 2016 04:27AM ET
For the 24 hours to 23:00 GMT, the EUR declined 0.77% against the USD and closed at 1.1059.
In economic news, the Euro zone’s retail sales rose in line with investor expectations by 0.4% MoM in May, recording this year’s highest monthly increase, driven by a robust growth in non-food sales. Retail sales had advanced by a revised 0.2% in the prior month. Additionally, the region’s final Markit services PMI rose to a level of 52.8 in June, from a preliminary reading of 52.4. Meanwhile in Germany, final services PMI surprisingly advanced to a level of 53.7 in June, while investors expected it to remain steady at the flash reading of 53.2.
The greenback posted gains after Brexit fears continued to weigh on risk appetite amongst investors.
On the economic front, US factory orders fell more-than-expected by 1.0% in May, led by weak demand for transportation and defence capital goods. In the previous month, factory orders had climbed by a revised 1.8%. Further, the nation’s final durable goods orders dropped 2.3% in May, compared to a revised advance of 3.3% in the prior month. The preliminary figures had recorded a drop of 2.2%. Moreover, the US IBD/TIPP economic optimism index unexpectedly declined to a level of 45.5 in July, compared to market expectations of it to remain steady at a level of 48.2.
In the Asian session, at GMT0300, the pair is trading at 1.1037, with the EUR trading 0.2% lower against the USD from yesterday’s close, extending its previous session losses.
The pair is expected to find support at 1.0986, and a fall through could take it to the next support level of 1.0934. The pair is expected to find its first resistance at 1.1136, and a rise through could take it to the next resistance level of 1.1234.
Moving ahead, investors will look forward to Germany’s factory orders data for May and the European Central Bank (ECB) President, Mario Draghi’s speech, scheduled in a few hours. Additionally, the US FOMC June meeting minutes, due later today, will attract a significant amount of market attention.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.