The Euro Dollar moved within a 1.11% range last week from lows of 1.1530 on Wednesday and a high of 1.1659 on Thursday against the Greenback. The pair moved of its perch of 1.1649 on Friday and relinquished all gains made earlier in session after strong US employment data. The US Nonfarm Payroll report surprised markets adding 201,000 new jobs in August, beating expectations of 191,000. Also average hourly earnings rose 0.4% month-on-month and by 2.9% year-on-year which was the highest wage growth in almost a decade.
Data locally, German industrial production was weaker than expected, falling by 1.1% in July, after declining 0.7% in June. The annual pace of growth in industrial production eased to an increase of 1.1% in July, down from a rise of 2.7% in June. Eurozone Q2 final GDP came in unchanged as expected at 0.4% but the year-on-year numbers were revised to 2.1% from 2.2%
Looking ahead the macroeconomic calendar is full and kicks off with the Eurozone’s Sentix Investor Confidence. This survey of 2,800 analysts and investors surprised to the upside in the past two months, reaching 14.7 points in August. A similar figure is likely for September.
On the technical front, we see support levels at 1.1530 followed by 1.1500. On the upside, first line of resistance sits at 1.1590 and then 1.1625