fbpx

Join our community of traders FOR FREE!

  • Learn
  • Improve yourself
  • Get Rewards
Learn More

EUR/USD advances on increased investors’ confidence

The euro advanced against the US dollar, rebounding from the previously touched 1-month low, following a report that showed the investors in the Euro area were most bullish in January in almost two years.

Having hit a session low at 1.3572 at 06:05 GMT, EUR/USD traded at 1.3608 at 10:23 GMT, adding 0.14% for the day. Support was likely to be received at December 5th low, 1.3544, while resistance was to be encountered at January 3rd high, 1.3672.

The 18-nation common currency was supported after a report showed the Euro zone SENTIX investor confidence in January rose to the highest level since April 2011. The SENTIX investors confidence index, which is based on a survey among 2 400 investors, rose to 11.9 in January from a reading of 8.0 a month ago. Analysts had expected the index to reach 9.5 this month. The data strengthened the Euro zone economy outlook by showing investors in the 18-nation Euro area are most bullish in almost two years.

The four largest Euro zone economies, Germany, France, Italy and Spain released reports on their Services PMI for December.

The market research group Markit Economics released its Spanish Services PMI, which reached 54.2 in December from 51.5 the previous month. Analysts had expected the index to rise to 51.5 in December. The French Services PMI came with a lower-than-expected final reading of 47.3 in December, while analysts projected the index will remain flat at 47.4, the same as the preliminary value in November.

The Italian Services PMI rose to 47.9 in December from 47.2 a month ago, but was short of expectations to an increase of 48.8. Meanwhile, the Services PMI in Germany, the largest Euro zone economy reached a final reading of 53.5 in December from a preliminary value of 54.0 in November. Analysts also projected that the index will remain unchanged at 54.0.

The Euro zone Services PMI for December remained at 51.0 in December, unchanged from the previous month preliminary reading and in line with expectations.

Meanwhile, on Thursday the Department of Labor in the United States reported that the number of people, who filed for unemployment assistance during the week ended December 28th, dropped to 339 000 from the upwardly revised 341 000 in the preceding week. Analysts had projected that the number of initial jobless claims will increase to 342 000.

In addition, according to data by the Institute for Supply Management (ISM), US companies operating in the sector of manufacturing increased their activity at a weaker but still steady rate in December compared to November. The corresponding index, gauging the performance of manufacturing sector in the country, came in at a value of 57.0 in December, down from 57.3 in the previous month, which was also the highest level of the index in 2.5 years. Analysts had forecast that the manufacturing PMI will demonstrate a larger drop in December, to 56.9.

The greenback may receive further support later in the day as a report may show the activity in the US sector of services increased, with the corresponding PMI rising to a reading of 54.5 in December from 53.9 in the preceding month. The Institute for Supply Management (ISM) will reveal the official data at 15:00 GMT today.

Elsewhere, AUD/USD touched a daily high at 0.8982 at 1:30 GMT, after which consolidation followed at 0.8962, gaining 0.15% for the day. Support was likely to be received at January 3rd low, 0.8885, while resistance was to be met at January 3rd high, 0.9004.

TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover Forex, Price Action and Social Trading.

Related News