Euro Declines Against US Dollar Despite Positive Eurozone PMI Data

The EUR/USD currency pair today hit a new session high during the European session before retracing all of its gains during the North America session. The pair had rallied higher on positive Markit Eurozone Composite PMI data and Germany’s Manufacturing PMI data, which met expectations.

The currency pair rallied to a new daily high of 1.1269 during the early European session after the positive economic releases from the Eurozone, but later retraced its gains.

The economic releases that boosted the euro included Germany’s GDP figure released by the Federal Statistical Office, which came in at an annualized figure of 1.7%, thereby meeting expectations. The Markit Eurozone Composite PMI data exceeded the market expectation of 56.5 as it was recorded at 57.0. The Markit Eurozone Composite PMI data also exceeded the market consensus of 56.7 by coming in at 56.8. However, the Markit Eurozone Composite PMI data did not meet expectations as it came in at 56.2 versus the expected 56.4.

New home sales data from the US released by the Census Bureau barely affected the currency pair’s performance as New home sales data from the US declined by 11.4% coming in at 569,000, versus the expected 610,000, and the previous 642,000. The currency pair’s decline was largely precipitated by the higher stock prices in the US and European markets.

The currency pair’s future performance is likely to be affected by Mario Draghi‘s speech and the release of the US existing home sales data, both scheduled for tomorrow.

The EUR/USD currency pair was trading at 1.1195 as at 16:23 GMT having declined from a high of 1.1269. The EUR/GBP pair was trading at 0.8624 having hit a daily high of 0.8674.

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