Euro Declines Against US Dollar on Positive US Data

The euro today declined significantly against the US dollar after a raft of positive releases from the US docket starting with the ADP employment change data in the mid-European session. The EUR/USD currency pair had registered some gains early in the European session after the release of positive Markit Eurozone Services PMI data.

The EUR/USD currency pair declined significantly from a high of 1.1788 to hit daily lows at 1.1746, which seems to be a support level established today.

The euro rallied higher early in the European session after the release of Markit Eurozone Services PMI, which exceeded expectations by coming in at 55.8 as opposed to the expected 55.6. Other Markit releases from the Eurozone included the Markit Germany Services PMI, which met expectations at 55.6, and the Markit France Services PMI, which was lower than expected at 57.0 versus the market consensus of 57.1.

The release of the US ADP employment change report reversed the EUR/USD’s rally as it met the market consensus figure of 135,000 new private sector jobs. Further releases from the US docket such as the positive Markit US Services PMI, which was recorded at 55.3 versus the expected 55.1, also contributed to the pair’s decline. Lastly, the release of the ISM Services/Non-manufacturing composite, which beat expectations by coming in at 59.8 instead of the expected 55.5, cemented the pair’s decline.

The currency pair’s future performance is likely to be affected by Janet Yellen‘s speech at the Community Banking Event scheduled for later today.

The EUR/USD currency pair was trading at 1.1761 as at 15:16 GMT having declined from a daily high of 1.1788. The EUR/JPY currency pair was trading at 132.62having recovered from a low of 132.22 earlier today.

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