TheÂ euro today hit new 2018 lows against theÂ US dollar following theÂ release ofÂ disappointing advance PMI data from across theÂ Eurozone. Some ofÂ theÂ PMIs released byÂ IHS Markit included theÂ Markit/BME Germany Manufacturing PMI, which missed expectations byÂ aÂ significant margin.
TheÂ EUR/USD currency pair today lost over 88 points toÂ decline from aÂ high ofÂ 1.1788 toÂ aÂ 6-month low ofÂ 1.1699.
TheÂ currency pair was onÂ aÂ downtrend from theÂ Asian session, which accelerated after theÂ release ofÂ theÂ Markit France Services PMI. TheÂ French services PMI came inÂ atÂ 54.3 versus theÂ expected 57.2, while theÂ Markit France Composite PMI was recorded atÂ 54.5 asÂ compared toÂ theÂ expected 56.6. TheÂ Markit Germany Services PMI also missed expectations byÂ coming inÂ atÂ 52.1, which was lower than theÂ expected 53.1. Finally, theÂ Markit Eurozone Manufacturing PMI also missed consensus estimates byÂ coming inÂ atÂ 55.5 versus theÂ expected 56.0. TheÂ Markit Eurozone Services PMI was also lower than expected. TheÂ upbeat Markit France Manufacturing PMI could not reverse theÂ pair’s downtrend.
TheÂ currency pair’s decline was further fueled byÂ theÂ resurgence inÂ US dollar demand asÂ tracked byÂ theÂ US Dollar Index, which hit aÂ high ofÂ 93.98. TheÂ risk sentiment inÂ theÂ financial market was lowered overnight byÂ Donald Trump‘s administration’s optimism regarding recent trade talks.
TheÂ currency pair’s short-term performance is likely toÂ be influenced byÂ theÂ Eurozone consumer confidence survey andÂ theÂ publication ofÂ FOMC minutes later today.
TheÂ EUR/USD currency pair was trading atÂ 1.1709 asÂ atÂ 11:08 GMT having declined from aÂ high ofÂ 1.1788. TheÂ EUR/JPY currency pair was trading atÂ 128.54 having dropped from aÂ high ofÂ 130.65.
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