For the 24 hours to 23:00 GMT, the EUR rose 0.07% against the USD and closed at 1.1209, after the Euro-zone’s ZEW economic sentiment index climbed to a level of 37.7 in June, notching its highest level in nearly two years, as investors remained upbeat about the region’s growth prospects after recent data indicated renewed vigour in the common currency bloc. The index had registered a level of 35.1 in the previous month.
Separately, mood amongst German investors surprisingly weakened in June, after data showed that the economic sentiment index registered an unexpected drop to a level of 18.6, compared to market expectations of a rise to a level of 21.8. The index had registered a reading of 20.6 in the previous month. On the other hand, the nation’s current situation index advanced to a nearly six-year high level of 88.0 in June, surpassing market expectations for the index to increase to a level of 85.0 and following a level of 83.9 in the previous month.
In economic news, the US NFIB small business optimism index surprisingly remained steady at a level of 104.5 in May, while market participants had envisaged for a rise to a level of 105.2.
In the Asian session, at GMT0300, the pair is trading at 1.1212, with the EUR trading slightly higher against the USD from yesterday’s close.
The pair is expected to find support at 1.1190, and a fall through could take it to the next support level of 1.1167. The pair is expected to find its first resistance at 1.1230, and a rise through could take it to the next resistance level of 1.1247.
Looking ahead, investors will concentrate on the Euro-zone’s industrial production data for April and Germany’s final consumer price inflation figures for May, both slated to release in a few hours. Later today, all eyes would be on the Federal Reserve’s (Fed) monetary policy decision, as the central bank is widely expected to announce an interest rate hike.
The currency pair is showing convergence with its 20 Hr moving average and trading above its 50 Hr moving average.
