US Dollar Trading Higher Ahead Of US Services And Composite PMI Data
GCI Financial | Jul 28, 2014 02:35AM ET
On Friday, EUR declined 0.23% against the USD and closed at 1.3433, after the Ifo sentiment indices from Germany, Euro-zone’s largest economy, disappointed. Data showed that the German business sentiment dropped for a third consecutive month to 108.0 in July, its lowest level in nine months, compared to a level of 109.7 in the prior month. Additionally, the Ifo current assessment index too fell to 112.9 in July, compared to previous month’s level of 114.8. The Ifo expectations index too deteriorated in July. However, the Gfk reported that the German consumer morale notched a 7-year high level of 9.0 in August. Furthermore, the ECB in its monthly report revealed that the Private-sector lending in the region fell 1.7%, on an annual basis, compared to a drop of 2.0% in the previous month.
The common currency also came under pressure after the European Union increased its blacklist of Russians subject to sanctions and broad economic measures against Moscow. However, over the weekend, Russia criticised the additional sanctions imposed by the European Union over Moscow’s role in the Ukraine crisis.
Elsewhere, ECB Vice President Vitor Constancio, in an interview in Bangkok downplayed speculations for any more additional measures in the near term from the ECB, however indicated that the aggressive easing measures implemented by the central bank in the month of June would be more than enough to tackle the problem of too-low inflation in the Euro-zone.
The US Dollar was boosted after data released indicated that the durable goods orders from the US rebounded and rose 0.7%, on a monthly basis, in June, compared to a 1.0% decline in the previous month.
In the Asian session, at GMT0300, the pair is trading at 1.3431, with the EUR trading tad lower from Friday’s close.
The pair is expected to find support at 1.3409, and a fall through could take it to the next support level of 1.3386. The pair is expected to find its first resistance at 1.3465, and a rise through could take it to the next resistance level of 1.3498.
Investors await the services and composite PMI numbers along with pending home sales data from the US to be released later during the day, however, the US Dollar would largely be influenced by the release of the GDP data from the US and the Federal Reserve’s interest rate decision slated later during the week.
The currency pair is showing convergence with its 20 Hr moving average and is trading below its 50 Hr moving average.
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.