Euro Trading Lower Ahead Of Germany’s IFO Data
GCI Financial | Apr 24, 2015 02:01AM ET
For the 24 hours to 23:00 GMT, the EUR rose 0.89% against the USD and closed at 1.0818, managing to recover after disappointing manufacturing and services PMI figures across the Euro-zone.
Data showed that the Euro-zone’s preliminary manufacturing PMI eased unexpectedly to a level of 51.9 compared to a reading of 52.2 in the previous month, while markets were anticipating it to climb to 52.6. Additionally, the services PMI dropped to 53.7 in April, from prior month’s reading of 54.2.
Elsewhere, in Germany, the preliminary manufacturing PMI fell unexpectedly to 51.90 in April, compared to market expectations of a rise to a level of 53.00. The index had registered a reading of 52.80 in the prior month. Meanwhile, the preliminary services PMI recorded an unexpected drop to 54.40 in April. Market anticipation were for it to climb to a level of 55.50.
The greenback came under pressure, after number of Americans filing for unemployment benefits for the first time registered an unexpected rise to a level of 295.00 K in the week ended 18 April and compared to market expectations of a drop to a level of 287.00 K. In the prior week, initial jobless claims had registered a reading of 294.00 K. Additionally, the preliminary Markit manufacturing PMI eased unexpectedly to 54.20 in April, compared to market expectations of an unchanged reading of 55.70 registered in the previous month.
The greenback was further weighed down, after new home sales in the US slid more than expected by 11.4% MoM in March, compared to prior month’s revised rise of 5.6%. Markets were expecting it to fall 4.5%.
In the Asian session, at GMT0300, the pair is trading at 1.0795, with the EUR trading 0.21% lower from yesterday’s close.
The pair is expected to find support at 1.0692, and a fall through could take it to the next support level of 1.0589. The pair is expected to find its first resistance at 1.0872, and a rise through could take it to the next resistance level of 1.0949.
Trading trends in the Euro today are expected to be determined by Germany’s IFO survey, scheduled in a few hours. Meanwhile, the US durable goods orders data, scheduled later today would grab lot of market attention.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
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