For the 24 hours to 23:00 GMT, the EUR rose 0.29% against the USD and closed at 1.2358, after hawkish comments from the European Central Bank (ECB) policymaker, Ewald Nowotny reinvigorated hopes that the central bank will soon wind down its massive monetary policy programme.
In economic news, industrial production in France rebounded 1.2% MoM in February, falling short of market expectations for a rise of 1.4%. Industrial production had recorded a revised drop of 1.8% in the prior month. On the contrary, Italy’s seasonally adjusted industrial production registered an unexpected drop of 0.5% on a monthly basis in February, compared to a revised fall of 1.8% in the prior month, while markets were expecting for a gain of 0.8%.
Macroeconomic data released in the US indicated that the NFIB small business optimism index eased more-than-anticipated to a level of 104.7 in March, compared to a level of 107.6 in the prior month. Markets were anticipating the index to fall to a level of 107.0.
Other data indicated that the nation’s producer price index (PPI) rose 0.3% on a monthly basis in March, beating market consensus for an advance of 0.1%. The PPI had registered a gain of 0.2% in the prior month.
In the Asian session, at GMT0300, the pair is trading at 1.2358, with the EUR trading flat against the USD from yesterday’s close.
The pair is expected to find support at 1.2315, and a fall through could take it to the next support level of 1.2271. The pair is expected to find its first resistance at 1.2390, and a rise through could take it to the next resistance level of 1.2421.
Moving ahead, investors would keep a close watch on a speech by the European Central Bank (ECB) President, Mario Draghi, slated to release in a few hours. Later in the day, the US consumer price inflation data and monthly budget statement, both for March, will garner a lot of market attention. Also, minutes of the FOMC’s March meeting, due to release later today, will be eyed by traders.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
