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COZfx: Euro continues gain in the Asian Session

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COZfx: Euro continues gain in the Asian Session

Postby dwang » Tue Aug 05, 2014 2:54 am

COZforex: On Friday, the EUR rise 0.27% against the USD and closed at 1.3425. The USD lost ground following disappointing economic releases from the US. The nation’s unemployment rate rise to 6.2%, against market expectations of rate to steady from the previous month at 6.1%. However, the US non-farm payrolls for July grew lesser-than-expected by 209K. It had recorded a rise of 298K a month ago. Markit reported that the final manufacturing PMI in July declined to 55.8 in the US, lower than market expectations for a reading of 56.5. It had recorded a level of 57.3 in the prior month.

Meanwhile, the ISM indicated that the manufacturing PMI grew to 57.1 in July, from a reading of 55.3 registered in June. Furthermore, personal consumption expenditure deflator in June rose 1.6% in the US, on an annual basis, lower than the market expectation of 1.7%. Elsewhere, the Reuters/University of Michigan revealed that its final reading on consumer sentiment index for July was 81.8, below market estimate of 82.0 and June’s reading of 82.5.

On Friday, Euro zone’s final manufacturing PMI remained unchanged at a level of 51.8 in July, though the markets had expected it to advance to 51.9. In addition, Germany, Euro zone’s biggest economy, recorded a drop in its manufacturing PMI. The nation’s PMI declined to 52.4 compared to a market expectation of 52.9. It had recorded a similar rise a month ago. Similarly, Italy also reported a drop in its PMI to a level of 51.9, against market expectations to rise to 52.6. Spain’s manufacturing PMI stood at 53.9 in July, below market estimate of 54.7. Meanwhile, French manufacturing PMI came in at 47.8, above analysts’ expectations of 47.6 in July.

In technical analysis, COZFX strategist Nigel Boynton said, EUR/USD is predicted to find support at 1.3385 and a drop through could take it to the next support line of 1.3347. Meanwhile, EUR/USD is predicted to find its first resistance at 1.3453, and a rise through could take it to the next resistance line of 1.3483.

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