COZfx: Euro-zone’s construction output rebounded in April

COZforex: For the past trading session, the EUR declined 0.43% against the USD and closed at 1.1150.

On the macro front, the Euro-zone’s seasonally adjusted construction output rebounded 0.3% on a monthly basis in April, following a drop of 1.1% in the previous month.

The US Dollar advanced against its key peers, after a key Federal Reserve policymaker indicated that a third interest rate hike this year remains on the table.

The New York Federal Reserve President, William Dudley, offered an upbeat assessment of the US economy, stating that tightening in the labour market will push wages higher and will eventually help drive up inflation. However, the Chicago Fed President, Charles Evans, noted that the Fed should move slowly to raise rates and shrink its portfolio, as inflation is stubbornly soft.

In technical analysis, COZforex foreign currency senior currency strategist, Paul Chew said: EUR/USD is expected to find support at 1.1127 and a fall through could take it to the next support level of 1.1098; Meanwhile, the pair is expected to find its first resistance at 1.1199, and a rise through could take it to the next resistance level of 1.1242.

Moving ahead, investors will look forward to the Euro-zone’s current account data for April, slated to release in a few hours. Additionally, market participants would eye comments from a few Fed officials as they are scheduled to speak later in the day.

(COZ forex UK)