EUR/USD unable to cheer upbeat German PMI report

FXStreet (Mumbai) - The EUR/USD pair; under pressure due to expectations of more ECB easing; failed to cheer the a better-than-expected German preliminary private sector activity reports released just now.

Losses erased, but gains hard to come

The pair traded largely unchanged on the day around 1.0630 ahead of the German data after having hit a low of 1.06 in Asia. However, the momentum appears to have stalled around 1.0640 despite an uptick in the German PMI figures.

The manufacturing PMI came-in at 52.6, bettering the estimate of 52.1, while the services PMI printed at 55.6 to beat the estimate of 54.3. Next on tap in the aggregate Eurozone preliminary PMI release.

EUR/USD Technical Levels

The immediate resistance is seen at 1.0671 (hourly 100-MA), above which the gains could be extended to 1.075 (hourly 200-MA). On the lower side, 1.06 could offer support, but a break below the same would expose 1.0520 (Apr 13 low) and 1.0463 (Mar 13 low).

Nov 23, 2015

Hong Kong SAR Consumer Price Index increased to 2.4% in October from previous 2%

John Williams feel Fed to follow stair-step pattern to decide on subsequent rate hikes

The U.S. central bank had wanted to see “some further improvement in the labor market” and be “reasonably confident” that sluggish inflation would move back to their 2 per cent annual target before raising rates. The U.S. Labor Department reported a surge in employment in October, further backing a December rate hike. Most Federal Reserve officials seemed confident that the Fed’s twin goals of full employment and stable two per cent inflation can be met in due course. The Fed continues to be inclined towards a December rate hike, after having kept the interest rates near zero for almost a decade now.