Re: Daily market news by Cozfx
COZfx: German producer price inflation declined to a 4-month low level in November
COZforex: For the past session, the EUR rose 0.27% against the USD and closed at 1.1873.
On the macro front, the Euro-zone’s seasonally adjusted current account surplus narrowed to €30.8 billion in October, after recording a revised surplus of €39.2 billion in the prior month.
Separately, Germany’s producer price index climbed less-than-anticipated by 2.5% on an annual basis in November, rising at its weakest pace in four months. The PPI had recorded a gain of 2.7% in the previous month, while markets were expecting for an advance of 2.6%.
In the US, data showed that existing home sales climbed 5.6% on a monthly basis to a level of 5.81 million in November, notching its highest level since December 2006, thus suggesting that the nation’s housing sector is on a stable path to recovery. Existing home sales had registered a revised reading of 5.50 million in the prior month, while investors had envisaged for a rise to a level of 5.53 million. On the other hand, the nation’s MBA mortgage applications recorded a drop of 4.9% in the week ended 15 December 2017, compared to a fall of 2.3% in the prior week.
In technical analysis, COZFX strategist Nigel Boynton said: EUR/USD is expected to find support at 1.1829 and a fall through could take it to the next support level of 1.1793; Meanwhile, the pair is expected to find its first resistance at 1.1902, and a rise through could take it to the next resistance level of 1.1939.
Moving ahead, traders would look forward to the Euro-zone’s flash consumer confidence index for December, scheduled to release later in the day. Moreover, the US 3Q GDP and initial jobless claims data, set to release later today, will keep investors on their toes.
(COZ forex UK)