For the 24 hours to 23:00 GMT, the EUR declined 0.22% against the USD and closed at 1.1217.
Macroeconomic data indicated that the Euro-zone’s final Markit manufacturing PMI rose to a six-year high level of 57.0 in May, confirming the preliminary print. In the previous month, the PMI had registered a level of 56.7.
Additionally, growth in Germany’s manufacturing sector expanded at its fastest pace since 2011 in May, with the PMI revised higher to a level of 59.5, compared to an advance to a level of 59.4 in the flash estimate and following a reading of 58.2 in the previous month.
The greenback gained ground against its major peers, following upbeat US private sector job report.
Private sector employment in the US jumped more-than-expected by 253.0K in May, pointing towards continued strength in the nation’s labour market. The private sector employment had registered a revised gain of 174.0K in the prior month, while market participants anticipated for a rise of 180.0K.
Additionally, the nation’s ISM manufacturing PMI recorded an unexpected rise to a level of 54.9 in May, suggesting that manufacturing sector continues to perform well in the second quarter of the year. Investors had envisaged the PMI to remain steady at a level of 54.8.
Another set of data indicated that the final Markit manufacturing PMI in the US eased less than initially estimated to a level of 52.7 in May, while the flash print had indicated a fall to a level of 52.5. In the previous month, the PMI had recorded a reading of 52.8. On the other hand, the nation’s initial jobless claims advanced to a level of 248.0K in the week ended 27 May 2017, topping market expectations for it to rise to a level of 238.0K. Initial jobless claims had registered a revised reading of 235.0K in the previous week. Further, the nation’s construction spending posted its biggest drop in a year, after it unexpectedly fell 1.4% on a monthly basis in April, defying investor consensus for a rise of 0.5% and following a revised gain of 1.1% in the prior month.
In the Asian session, at GMT0300, the pair is trading at 1.1217, with the EUR trading flat against the USD from yesterday’s close.
The pair is expected to find support at 1.1194, and a fall through could take it to the next support level of 1.1170. The pair is expected to find its first resistance at 1.1249, and a rise through could take it to the next resistance level of 1.1280.
With no major economic releases in the Euro-zone today, investors will direct their attention to the crucial US non-farm payrolls and average hourly earnings data for May along with the nation’s trade balance figures for April, all slated to release later in the day.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
