For the 24 hours to 23:00 GMT, the EUR declined 0.12% against the USD and closed at 1.1240.
On the macro front, Euro-zone’s unemployment rate rose to 7.4% in May, less than expectations for a rise to 7.7%. In the previous month, the unemployment rate stood at 7.3%. Meanwhile, the producer price index fell 5.0% on a yearly basis in May, amid falling energy prices and more than market consensus for a drop of 4.8%. In the previous month, the index had recorded a fall of 4.5% in the previous month.
In the US, nonfarm payrolls climbed by 4800.0K in June, more than market consensus for a rise of 3000.0K and compared to a revised reading of 2699.0K in the previous month. Additionally, the unemployment rate dropped to 11.1% in June, more than market forecast for a drop to 12.3% and compared to a rate of 13.3% in the earlier month. Additionally, final durable goods orders climbed 15.7% on a monthly basis in May, compared to a revised fall of 18.1% in the previous month. The preliminary figures had indicated a rise of 15.8%. Meanwhile, trade deficit widened to $54.6 billion in May, amid drop in exports and more than market forecast for a deficit of $53.0 billion. In the prior month, trade balance had recorded a revised deficit of $49.8 billion. Moreover, average hourly earnings climbed 5.0% on a yearly basis in June, less than market forecast for an advance of 5.3% and compared to a revised rise of 6.6% in the previous month. Furthermore, factory orders jumped 8.0% on a monthly basis in May, less than market forecast for a rise of 8.9% and compared to a revised fall of 13.5% in the previous month. Also, initial jobless claims fell to 1427.0K in week ended 27 June 2020, less than market consensus for a drop to a level of 1355.0K and compared to a revised reading of 1482.0K in the prior week.
In the Asian session, at GMT0300, the pair is trading at 1.1245, with the EUR trading marginally higher against the USD from yesterday’s close.
The pair is expected to find support at 1.1211, and a fall through could take it to the next support level of 1.1177. The pair is expected to find its first resistance at 1.1291, and a rise through could take it to the next resistance level of 1.1337.
Amid no major economic releases in the US today, traders would keep a watch on the Markit services PMI for June, slated to release across the euro area in a few hours.
The currency pair is trading below its 20 Hr moving average and showing convergence with its 50 Hr moving average.
