EUR/USD Declines Sharply on Weak Eurozone Markit PMIs

The EUR/USD currency pair today declined sharply following the release of weak Eurozone Flash PMIs by IHS Markit in the early European session. The pair’s decline was triggered by disappointing PMI reports such as the Markit Germany Composite PMI, which came in below expectations.

The EUR/USD currency pair lost over 80 points to decline from a high of 1.2390 to a low of 1.2307 at the time of writing.

The currency pair opened today’s session on an uptrend following yesterday’s FOMC rate decision, which triggered a massive rally by the pair. The decline was spurred by Markit releases such as The Markit/BME Germany manufacturing PMI, which came in at 58.4 versus the expected 59.8, indicating a slowdown in manufacturing activity in Europe’s largest economy. The Markit Eurozone manufacturing PMI also disappointed by coming in at 56.6 versus the expected 58.1. The Markit Eurozone Services PMI was also lower than expected as it was recorded at 55.0 as compared to the consensus estimate of 56.0. Other PMI releases from France were also below expectations.

The only positive print from the Eurozone was the German IFO business climate index, which came in at 114.7, slightly higher than the expected 114.6. The German IFO current assessment was also slightly higher than expected, but could not reverse the currency pair’s decline.

The currency pair’s short-term performance is likely to be affected by the release of US jobless claims data, and several US Markit releases scheduled for later today.

The EUR/USD currency pair was trading at 1.2324 as at 11:59 GMT having dropped from a high of 1.2390 earlier today. The EUR/JPY currency pair was trading at 130.18 having declined from a high of 131.01.

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