Eurusd rises as mixed economic data emerges from US and Euro Area

EURUSD Analysis

Performance after Wednesday
Period	Pct	Chg	Momentum
Wednesday	0.56%	60.7 Pips
Week to-date	0.3%	32.4 Pips
April	0.35%	37.4 Pips

Upcoming key events (London Time)

Fri 01:30 PM USD Nonfarm Payroll Employment
Fri 01:30 PM USD Average Hourly Earnings (12-mth)

What happened lately

In the United States, data from the Census Bureau indicates a continued decline in new orders for manufactured goods, with a decrease to 0.6% in February, down from a revised figure of 1.7% in January. This suggests a slowdown in manufacturing activity, which could be indicative of softening demand. Additionally, the U.S. Job Openings and Labor Turnover Survey (JOLTS) revealed a reduction in job openings to 7.568 million in February, from a previously revised January figure of 7.74 million, signaling potential easing in the labor market, thus suggesting that companies may be slowing their hiring pace.

In the Euro Area, the latest data from Eurostat show mixed trends in inflation. The Harmonized Index of Consumer Prices (HICP) for March showed a rise to 0.6% on a monthly basis, up from 0.4% in February, indicating that prices are rising, albeit modestly. On a core basis, the monthly rise was more significant, increasing to 1% in March from 0.5% in February. However, on a yearly basis, the HICP decreased slightly to 2.2% from 2.3%, and the core HICP fell to 2.4% from 2.6%, suggesting a slight easing in medium-term price pressures. Furthermore, the Euro Area unemployment rate showed improvement, dropping to 6.1% in February from 6.2% in January, reflecting a marginal strengthening in the labor market.

The EURUSD saw an increase of 0.56% to 1.08563. The mixed data between the U.S. and the Euro Area provides some context for this movement. The slowdown in U.S. manufacturing and a decrease in job openings could lead to a weakening dollar, as these figures may indicate the need for more accommodative monetary policy from the Federal Reserve. Meanwhile, the slight rise in Euro Area inflation, coupled with a reduced unemployment rate, could provide some support for the euro. However, the upcoming U.S. Nonfarm Payroll Employment and Average Hourly Earnings data will be closely watched. Should these figures surprise to the upside, the dollar could see renewed strength, potentially reversing some of the euro’s gains against the dollar.

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What can we expect from EURUSD today?

EURUSD on Wednesday rose 0.56% to 1.08563. Price is above 9-Day EMA while Stochastic is falling.

Updated daily direction for EURUSD looks bullish as the pair ended higher after Wednesday trading session.

Looking ahead for the day, immediate upside resistance level is R1 at 1.09271 with break above could target R2 at 1.09978 or figure level area. While towards the downside, we are looking at daily low of 1.07800 as an important support. Break below this level could weaken the current bullish momentum. A break above 1.09243 may suggest continuation after recent positive movement.

For the week to-date, take note that EURUSD is bullish as the pair continued to trade higher and is up by 0.3% over the past few days.

Key levels to watch out:

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