Euro Trading Lower Ahead Of Germany’s IFO Data
GCI Financial | Jan 26, 2015 01:10AM ET
On Friday, the EUR declined 1.07% against the USD and closed at 1.1245.
In economic news, the Euro-zone’s preliminary manufacturing PMI climbed to 51.0 in January, compared to a level of 50.60 in the previous month, while the preliminary services PMI advanced more than expected to 52.3 in January compared to market expectations of a rise to a level of 52.0.
Elsewhere, in Germany, the preliminary services PMI recorded a rise to 52.7 in January, following a reading of 52.1 recorded in the previous month. Market anticipations were for the index to rise to 52.5. On the other hand, the nation’s manufacturing PMI recorded an unexpected drop to 51.0 in January, lower than market expectations of a rise to 51.70. Meanwhile, manufacturing PMI in France climbed more than expected in January, while the services PMI surprisingly fell in the same month.
In the US, the Markit manufacturing PMI surprisingly eased to a 12-month low level of 53.7 in January, compared to previous month’s level of 53.9, while markets were expecting it to rise to 54.0. Meanwhile, existing home sales in the nation rebounded 2.4% on a monthly basis in December, lower than market expectations to advance to a level of 3.0% and following a 6.1% drop recorded in November. Additionally, the Chicago Fed national activity index slipped to -0.05 in December, from a revised level of 0.92 registered in the prior month. On the other hand, leading indicator rose more than anticipated by 0.5% on a MoM basis in December, against market expectations for a 0.4%. It had risen 0.6% in the preceding month.
In the Asian session, at GMT0400, the pair is trading at 1.1180, with the EUR trading 0.58% lower from Friday’s close.
The pair is expected to find support at 1.1062, and a fall through could take it to the next support level of 1.0945. The pair is expected to find its first resistance at 1.1333, and a rise through could take it to the next resistance level of 1.1486.
Trading trends in the Euro today are expected to be determined by Germany’s IFO economic expectations data coupled with the Euro-zone’s retail sales data, scheduled in few hours.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
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