Euro Trading Higher, Ahead Of Trade Balance Data
For the 24 hours to 23:00 GMT, the EUR declined slightly against the USD and closed at 1.1344.
In the US, data revealed that the US advance retail sales climbed 0.5% on a monthly basis in July, higher than market consensus for a gain of 0.1%. In the prior month, retail sales recorded a revised advance of 0.2%. Moreover, the nation’s industrial production rose 0.1% on a monthly basis in July, undershooting market expectations for a rise of 0.3%. In the previous month, industrial production had recorded a revised rise of 1.0%. Manufacturing production recorded a rise of 0.3% on a monthly basis in July, meeting market expectations. Manufacturing production had risen 0.8% in the previous month.
Other data showed that, the NY Empire State manufacturing index unexpectedly advanced to a level of 25.6 in August, compared to market expectations for a fall to a level of 20.0. The NY Empire State manufacturing index had registered a reading of 22.6 in the previous month.
On the other hand, the nation’s MBA mortgage applications eased to a 6-month low of 2.0% on a weekly basis in the week ended 10 August 2018. Mortgage applications had registered a drop of 3.0% in the previous week. Moreover, the NAHB housing market index declined to a level of 67.0 in August, at par with market expectations. The index had recorded a level of 68.0 in the previous month.
In the Asian session, at GMT0300, the pair is trading at 1.1375, with the EUR trading 0.27% higher against the USD from yesterday’s close.
The pair is expected to find support at 1.1323, and a fall through could take it to the next support level of 1.1271. The pair is expected to find its first resistance at 1.1405, and a rise through could take it to the next resistance level of 1.1435.
Going forward, investors will keep an eye on the Euro-zone’s trade balance data for June, staled to release in a few hours. Later in the day, the US initial jobless claims followed by housing starts and building permits, both for July, will keep investors on their toes.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.