TheÂ euro today declined against theÂ US dollar following theÂ release ofÂ mixed manufacturing PMI data from across theÂ euro area. TheÂ euro’s decline was further accelerated by renewed demand for the US dollar fueled by the risk-on investor sentiment.
TheÂ EUR/USD currency pair lost over 80 points toÂ decline from aÂ high ofÂ 1.2336 toÂ trade atÂ aÂ low ofÂ 1.2253 atÂ theÂ time ofÂ writing.
TheÂ currency pair’s decline was triggered byÂ theÂ release ofÂ theÂ Markit Italy Manufacturing PMI, which came inÂ atÂ 55.1 versus theÂ expected 55.5. TheÂ Markit/BME Germany Manufacturing PMI also contributed toÂ theÂ pair’s decline byÂ coming inÂ atÂ 58.2, which was lower than theÂ consensus estimate andÂ previous figure ofÂ 58.4. TheÂ positive Markit France Manufacturing PMI, which was recorded atÂ 53.7 slightly higher than theÂ expected 53.6, could not reverse theÂ pair’s decline. Finally, theÂ Markit Eurozone Manufacturing PMI forÂ March remained atÂ 56.6, which was 2 points lower than theÂ February figure.
TheÂ German February retail sales data released byÂ theÂ Federal Statistical Office early inÂ theÂ European session had aÂ muted impact onÂ theÂ currency pair despite missing expectations. Speeches from Federal Reserve board members Neel Kashkari andÂ Lael Brainard also boosted theÂ greenback.
TheÂ currency pair’s future performance is likely toÂ be influenced byÂ tomorrow’s Eurozone CPI data, theÂ US factory orders, andÂ theÂ ISM Non-Manufacturing/Services Composite forÂ March.
TheÂ EUR/USD currency pair was trading atÂ 1.2267 asÂ atÂ 15:41 GMT having dropped from aÂ high ofÂ 1.2336. TheÂ EUR/GBP currency pair was trading atÂ 0.8718 having declined from aÂ high ofÂ 0.8764.
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