For the 24 hours to 23:00 GMT, the EUR rose 0.62% against the USD and closed at 1.1872.
On the macro front, Euro-zone’s retail sales advanced 5.7% on a monthly basis in June, less than market anticipations for a rise of 5.9% and compared to a revised surge of 20.3% in the prior month. Meanwhile, the Markit services PMI advanced to 54.7 in July, compared to a reading of 48.3 in the prior month. The preliminary figures had indicated an advance to 55.1. Separately, Germany’s Markit services PMI climbed to 55.6 in July, compared to a level of 47.3 in the previous month. The preliminary figures had recorded a rise to 56.7.
In the US, the ISM non-manufacturing PMI unexpectedly rose to 58.1 in July, confounding market forecast for a drop to a level of 55.0 and compared to a reading of 57.1 in the earlier month. Additionally, the Markit services PMI climbed to 50.0 in July, compared to a level of 47.9 in the previous month. The preliminary figures had indicated a rise to 49.6. On the contrary, the ADP employment increased by 167.0K in July, less than market forecast for a rise of 1500.0K and compared to a revised reading of 4314.0K jobs in the prior month. Moreover, trade deficit narrowed to $50.7 billion in June, less than market expectations and compared to a revised deficit of $54.8 billion in the prior month. Further, the MBA mortgage applications dropped 5.1% on a weekly basis in the week ended 31 July 2020, compared to a fall of 0.8% in the previous week.
In the Asian session, at GMT0300, the pair is trading at 1.1868, with the EUR trading slightly lower against the USD from yesterday’s close.
The pair is expected to find support at 1.1810, and a fall through could take it to the next support level of 1.1751. The pair is expected to find its first resistance at 1.1916, and a rise through could take it to the next resistance level of 1.1963.
Going forward, traders would keep a watch on Germany’s factory orders for June, slated to release in a few hours. Later in the day, the US initial jobless claims, would keep investors on their toes.
The currency pair is showing convergence with its 20 Hr moving average and trading above its 50 Hr moving average.
