The EUR/USD currency pair was on a downward trend for most of today’s session as investors shift their buying focus from the euro to the US dollar. The release of the US ISM manufacturing data for June also pushed the currency pair lower as it exceeded market expectations, which supported the US dollar’s rally.
The currency pair lost over 50 points at the height of its decline as the greenback rallied against the single currency.
Today’s session marked a reversal in the bullish sentiment on the EUR/USD pair that was largely driven by a hawkish outlook from the European Central Bank. The release of positive Markit Germany Manufacturing PMI, which came in at 59.6 beating the market consensus of 59.3 did not boost the single currency. The positive Markit Eurozone Manufacturing PMI also could not reverse the pair’s downward trend.
The release of the US ISM manufacturing index drove the currency pair lower as it came in at 57.8 versus the expected 55.3 and the previous 54.9. The US ISM employment data also exceeded expectations as it was recorded at 57.2 versus the previous 53.5. The US Dollar index, which tracks the greenback’s performance, was also trading above its opening price of 95.64 for most of today’s session attesting to the US dollar’s strength.
Given the independence day celebrations in the US tomorrow, the currency pair’s future performance is likely to be affected by the release of the Eurozone producer price index also scheduled for tomorrow.
The EUR/USD currency pair was trading at 1.1364 as at 16:28 GMT having declined from a high of 1.1422 earlier today. The EUR/CAD was trading at 1.4776 having dropped from a high of 1.4832.
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