EUR/USD: Germany’s fourth quarter economic growth stagnated as initially estimated

EUR/USD: Germany’s fourth quarter economic growth stagnated as initially estimated

EURUSD

EURUSD Movement

For the 24 hours to 23:00 GMT, the EUR rose 0.25% against the USD and closed at 1.0880.

Data showed Germany’s gross domestic product remained flat on a quarterly basis in 4Q19, confirming the preliminary print and compared to a rise of 0.2% in the previous quarter.

In the US, the housing price index advanced 0.6% on a monthly basis in December, more than market expectations for a rise of 0.3% and compared to a revised rise of 0.3% in the prior month. On the other hand, the CB consumer confidence index rose to a level of 130.7 in February, less than market forecast and compared to a revised reading of 130.4 in the prior month. Additionally, the Richmond Fed manufacturing index dropped to a level of -2.0 in February, more than market consensus for a decline to a level of 13.0. In the previous month, the index had registered a reading of 20.0.

In the Asian session, at GMT0400, the pair is trading at 1.0867, with the EUR trading 0.12% lower against the USD from yesterday’s close.

The pair is expected to find support at 1.0835, and a fall through could take it to the next support level of 1.0802. The pair is expected to find its first resistance at 1.0895, and a rise through could take it to the next resistance level of 1.0922.

With no major macroeconomic releases in the Euro-zone today, investors would focus on the US new homes sales data for January along with the MBA mortgage applications, set to release later in the day.

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The currency pair is showing convergence with its 20 Hr moving average and trading above its 50 Hr moving average.

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