Euro Gains On Firm Business And German Data

Frankfurt (Nov 25)  The euro extended its gains yesterday as economic data was upbeat, including the regional data from Germany. The U.S. and Japan markets were closed, but the currency managed to push higher amid lower trading volumes. The broad flash PMI numbers showed a positive increase adding to the gains.

In the UK, the second revision to the GDP showed no changes as the UK's economy was seen rising 0.4% in the third quarter. Data from Canada saw retail sales rising below forecasts of just 0.3% but it’s better in comparison to the previous month's decline of 0.4%. Headline retail sales increased 0.1%, offsetting the 0.1% decline from the month before.

Looking ahead, the economic calendar today is quiet. Flash manufacturing PMI numbers from Markit will show how the sector performed for the month of November.

EURUSD intra-day analysis   

EURUSD (1.1855): The euro currency was seen extending the gains amid holiday thin trading yesterday. Price action remains biased upwards as the EURUSD is approaching a 2-month high. However, the recovery above the resistance level of 1.1843 - 1.1822 signals some weakness. Therefore, there is a strong risk of EURUSD pushing lower with the resistance level coming back into play. Alternately, if EURUSD manages to continue trading above this resistance level, then further upwards movement can be expected. There is some divergence being built on the intraday charts, which could suggest a near-term decline in prices.

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