The single currency of the European Union region rose during the Asian session to see its sixth session retreat since December 14 against the US dollar on the eve of economic developments and data expected Thursday by the Eurozone economies and the US economy, the world's largest economy.
At 04:58 GMT, the EURUSD rose 0.20% to 1.1503 compared to the opening at 1.1480 after hitting its highest level since January 11 at 1.1508, while the lowest level during the session At 1.1479.
The markets are looking for the biggest economies in the eurozone Germany to reveal the reading of the Retail Sales Index, which may reflect a 0.5% drop from 1.4% last November, before we see the region's second-largest economy France unveiling a preliminary reading of the Consumer Price Index May show a 0.5% contraction versus stability at zero levels in December.
This comes before we see the fourth largest economy of the euro area Spain to disclose growth data with the release of the preliminary reading of the fourth quarter GDP index, which may reflect the stability of growth of 0.6%, unchanged from the third quarter, in conjunction with the publication of the annual reading of the price index Which may show a slowdown in growth to 1.1% from 1.2% in the previous December reading.
To a reading of Germany's unemployment change, which may show a contraction of 11,000 versus 14,000 in December, ahead of the preliminary GDP reading for Italy, the third-largest economy in the region, which could reflect deflationary stability of 0.1% in the quarter Fourth, coinciding with the disclosure of unemployment reading for Italy which may reflect a rise to 10.6% compared to 10.5% in November.
In addition to the preliminary reading of the gross domestic product of the economies of the region as a whole, which could reflect the stability of growth at 0.2% in the fourth quarter and the reading of unemployment rates for the region as a whole, which may show stability at 7.9%, unchanged from November, In November, before we see the German central bank governor Jean-Wiedmann in Mannheim later in the day.
On the other hand, the markets are currently looking to the US economy for a reading of the Labor Cost Index for the fourth quarter, which may reflect the stability of growth to 0.8%, unchanged from the third quarter, in conjunction with the publication of the index of requests for aid for the week of 26 January, Which may reflect a rise of 16 thousand applications to 215 thousand requests in the previous weekly reading,
Ahead of the Chicago PMI reading, which could reflect a contraction of 61.5 vs. 65.4 last December, to reveal housing market data with a new home sales reading that could reflect a rise to around 569,000 homes Compared with 544,000 in November.
This comes just hours after the FOMC meeting on 29-30 January, which left the committee on federal funds rates at between 2.25% and 2.50% with a further reduction in bond repurchase by $ 50 Billion dollars a month before Federal Reserve Governor Jerome Powell said the panel would be patient about raising interest rates in the coming period.
Technical Analysis
The EUR / USD pair breached 1.1443 after yesterday's close above it and is now starting to rise further above the 1.1500 barrier, which supports the chances of a continuation of the bullish trend during the coming sessions, noting that our positive targets start at 1.1550 and extend to 1.1705.
Therefore, we are waiting for further bullishness for the day provided that the price remains stable above 1.1443.
The trading range for today is expected among 1.1443 support and 1.1600 resistance
Support and resistance:
Support: 1.1443-1.1386-1.1341
Resistance: 1.1512-1.1583
The general trend for today is bullish