COZforex: The euro pulled away from session lows against the US dollar on Tuesday after data showed that US retail sales rose more-than-expected in December, but concerns over the U.S. debt ceiling debate continued to weigh.
EUR/USD pulled back from 1.3311, the pair’s lowest since Friday, to hit 1.3351 during U.S. morning trade, still down 0.22% for the day. COZforex senior currency strategist Ian • Quigley said, EUR/USD is predicted to find support at 1.3328, and a fell through could take it to the next support line of 1.3300. Meanwhile, the pair is predicted to find its first resistance at 1.3393, and a rose through could take it to the next resistance level of 1.3429.
The Commerce Department said US retail sales rise 0.5% in December, beating predictions for a 0.2% gain. A separate report showed that producer prices in the US fall 0.2% last month, compared to predictions for a 0.1% drop.
Dollar demand continued to remain supported during uncertainty over the US debt ceiling deadlock, after President Barack Obama urged Republicans Monday to approve an increase in the borrowing limit without seeking policy concessions in return.
In the Euro-zone economic news, industrial output in the Euro-zone dropped 3.7% annually in November, compared to a revised 3.3% decline recorded in October.
Meanwhile, wholesale prices in Germany rise 3.2% annually in December, compared to a similar rate of growth recorded in November, whereas on a monthly basis, the wholesale price index remained flat in December, following a 0.7% fell in November. Another report showed that the euro zone trade surplus widened to EUR11 billion in November from EUR7.4 billion in October, as exports rise 5%.
Also Tuesday, data showed that the Empire State manufacturing index dropped to minus 7.8 in January from a reading of minus 7.3 in December. Analysts had expected the index to improve to 2.0 this month.
(COZ forex UK)
EUR/USD pulled back from 1.3311, the pair’s lowest since Friday, to hit 1.3351 during U.S. morning trade, still down 0.22% for the day. COZforex senior currency strategist Ian • Quigley said, EUR/USD is predicted to find support at 1.3328, and a fell through could take it to the next support line of 1.3300. Meanwhile, the pair is predicted to find its first resistance at 1.3393, and a rose through could take it to the next resistance level of 1.3429.
The Commerce Department said US retail sales rise 0.5% in December, beating predictions for a 0.2% gain. A separate report showed that producer prices in the US fall 0.2% last month, compared to predictions for a 0.1% drop.
Dollar demand continued to remain supported during uncertainty over the US debt ceiling deadlock, after President Barack Obama urged Republicans Monday to approve an increase in the borrowing limit without seeking policy concessions in return.
In the Euro-zone economic news, industrial output in the Euro-zone dropped 3.7% annually in November, compared to a revised 3.3% decline recorded in October.
Meanwhile, wholesale prices in Germany rise 3.2% annually in December, compared to a similar rate of growth recorded in November, whereas on a monthly basis, the wholesale price index remained flat in December, following a 0.7% fell in November. Another report showed that the euro zone trade surplus widened to EUR11 billion in November from EUR7.4 billion in October, as exports rise 5%.
Also Tuesday, data showed that the Empire State manufacturing index dropped to minus 7.8 in January from a reading of minus 7.3 in December. Analysts had expected the index to improve to 2.0 this month.
(COZ forex UK)