TheÂ EUR/USD currency pair today rallied higher inÂ theÂ early European session following theÂ release ofÂ mixed PMI data from across theÂ Eurozone byÂ IHS Markit. TheÂ currency pair’s initial rally was further boosted byÂ theÂ weaker US dollar asÂ tracked byÂ theÂ US Dollar Index whose recovery had stalled inÂ theÂ early European session.
TheÂ EUR/USD pair today rallied briefly from aÂ low ofÂ 1.1682 toÂ aÂ high ofÂ 1.1717, but later headed lower asÂ theÂ US dollar recovered.
TheÂ currency pair’s initial rally was fueled byÂ theÂ release ofÂ theÂ Markit Germany Services PMI forÂ May, which met expectations byÂ coming inÂ atÂ 52.1. TheÂ Markit France Services PMI also met expectations asÂ it was recorded atÂ 54.3. TheÂ Markit Italy Services PMI also beat expectations byÂ coming inÂ atÂ 53.1 versus theÂ expected 53.0. TheÂ euro’s rally was limited byÂ theÂ Markit Eurozone Services PMI, which came inÂ atÂ 53.8 missing expectations byÂ 0.1%. TheÂ weak Eurozone retail sales data forÂ April released byÂ Eurostat also contributed toÂ theÂ pair’s decline after its brief rally. TheÂ retail sales recorded 0.1% growth inÂ April versus theÂ expected 0.5% growth.
TheÂ currency pair’s rally was capped byÂ theÂ positive sentiment around European equities asÂ theÂ Italian political crisis appears toÂ be resolved. New Italian Prime Minister Giuseppe Conte‘s government will face aÂ vote ofÂ confidence later today.
TheÂ currency pair’s short-term performance is likely toÂ be affected byÂ theÂ release ofÂ theÂ US ISM Non-Manufacturing/Services PMI later today.
TheÂ EUR/USD currency pair was trading atÂ 1.1665 asÂ atÂ 12:30 GMT having declined from aÂ high ofÂ 1.1717. TheÂ EUR/JPY currency pair was trading atÂ 127.96 having dropped from aÂ high ofÂ 128.70.
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