EUR/USD: Euro Extends Its Gain In The Asian Session For the 24 hours to 23:00 GMT, EUR rose 0.17% against the USD and closed at 1.3802. The US Dollar came under pressure after a lacklustre US initial jobless claims report strengthened the prospect of a prolonged Fed stimulus measure. A government report revealed that initial jobless claim in the US declined from previous week’s level of 362,000 to a reading of 350,000 during the week ended October 18. Market had expected initial jobless claims to decline to a reading of 340,000. Separately, another report showed that the Markit manufacturing PMI for the US fell to a level of 51.1 in October, more than analysts’ estimate for a decline to 52.5, from a reading of 52.8 witnessed in the preceding month. However, the US trade deficit widened less than expected to $38.80 billion, compared to a revised deficit of $38.64 billion seen in the previous month. Meanwhile, in the Euro-zone, a report showed that the region’s Markit manufacturing PMI rose to a level of 51.3 in October, less than market expectation for a rise to 51.4 from a reading of 51.1 registered in the previous month. However, Markit service and composite PMI declined unexpectedly to a level of 50.9 and 51.5, respectively during October, following previous month’s reading of 52.2. PMI data in Germany and France also disappointed investors. In the Asian session, at GMT0300, the pair is trading at 1.3805, with the EUR trading tad higher from yesterday’s close. The pair is expected to find support at 1.3769, and a fall through could take it to the next support level of 1.3734. The pair is expected to find its first resistance at 1.3834, and a rise through could take it to the next resistance level of 1.3864. Traders are expected to keep a close watch on the release of Germany’s IFO business climate data and a report on IFO – expectations from Germany. The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
Posted on: Fri, 25 Oct 2013 07:00:18 +0000
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