EUR/USD: Euro Continues To Trade Higher This Morning

EUR/USD: Euro Continues To Trade Higher This Morning

For the 24 hours to 23:00 GMT on Friday, EUR rose 0.66% against the USD and closed at 1.3163, as investor risk appetite increased following positive Euro-zone and US economic data.

Euro-zone's manufacturing purchasing managers' index (PMI) climbed to a reading of 46.3 in December, compared to a reading of 46.2 posted in the previous month. Meanwhile, the services PMI rose to a reading of 47.8 in December, compared to a reading of 46.7 posted in the previous month. Meanwhile, the consumer price index (CPI) retreated 0.2% in November, compared to a 0.2% rise posted in the previous month.

Meanwhile, in the US, industrial production rose 1.1% (MoM) in November, following a downwardly revised 0.7% in October. Moreover, the consumer price index retreated by 0.3% (MoM) in November, following a 0.1% increase in October.

However, Germany's Markit manufacturing purchasing managers' Index (PMI) slipped to a reading of 46.3 in December, from a reading of 46.8 in November, whereas services PMI rose to 52.1 in December, compared to a reading of 49.7 in November.

In the Asian session, at GMT0400, the pair is trading at 1.3164, with the EUR trading marginally higher from Friday's close.

The pair is expected to find support at 1.3091, and a fall through could take it to the next support level of 1.3018. The pair is expected to find its first resistance at 1.3212, and a rise through could take it to the next resistance level of 1.3261.

Trading trends in the pair today are expected to be determined by the release of labour cost and trade balance data in the Euro-zone.