COZfx: Euro trading tad higher ahead of ECB interest rate decision

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COZforex: For the past trading session, EUR rise 0.34% against the USD and closed at 1.3518.

In economic news, Markit economic reported that Euro-zone’s service sector PMI declined less-than-expected to a reading of 51.6 in October, from a level of 52.2 recorded in the previous month. Similarly, Euro-zone’s Markit composite PMI also declined to a reading of 51.9 in October, less than analysts’ estimate for a drop to 51.5 from the preceding month’s reading of 52.2. However, retail sales in the Euro-zone rose 0.3% in September, less than market expectations for a rise of 0.7% and compared to a decline of 0.2% registered in August.

Meanwhile, in the US, President of the Cleveland Fed, Sandra Pianalto, suggested that the Fed needs to be cautious about continuing its asset purchases, given the limited experience it has with the programme. She added, “My hope is that the economic recovery will accelerate so that the Fed gains the reassurance it needs to begin winding the programme.”

On the economic front, a report showed that, on an annual basis, employers in the US announced plans to cut 45,730 jobs in October, 13.5% up from 40,290 announced in September. Separately, the Conference Board reported that its leading indicator in the US rise 0.7% in September, more than analysts’ consensus for a rise of 0.6% and compared to a similar rate of rise witnessed in the previous month.

In technical analysis, coz forex senior derivatives trader Daniel • Moloney said, EUR/USD is predicted to find support at 1.3488, and a drop through could take it to the next support line of 1.3457. Meanwhile, the pair is predicted to find its first resistance at 1.3549, and a rise through could take it to the next resistance line of 1.3579.

Later today, the European Central Bank is scheduled to reveal its decision on the region’s benchmark interest rate, which is widely expected to remain unchanged at a record low 0.5%. Following the central bank’s interest rate decision, investors would keenly await ECB President, Mario Draghi’s speech on the stance of monetary policy in the region.

(COZ forex UK)