Euro Rallies Slightly Against US Dollar on Mixed Eurozone PMIs

The euro today rallied slightly higher against the US dollar in the early European session following the release of mixed Eurozone PMI data by IHS Markit. The US dollar was stronger against the euro during the Asian session after President Donald Trump‘s comments on US GDP growth boosted the greenback.

The EUR/USD currency pair today rallied from a low of 1.1653 to a high of 1.1710 following the Markit releases.

The currency pair’s rally could largely be attributed to the positive Eurozone PMI releases such as the Markit/BME Germany Manufacturing PMI, which came in at 57.3 versus the expected 55.5. Other positive PMIs include the Markit Germany Services PMI, which also beat expectations by coming in at 54.4, as compared to the consensus estimate of 54.3. The Markit Eurozone Manufacturing PMI also surprised to the upside by coming in at 55.1 versus the market expectation of 54.6. Other weak releases such as the Markit Eurozone Services PMI and the Markit France Services PMI limited the currency pair’s upside.

The currency pair’s performance was also largely dependent on the greenback’s erratic performance as tracked by the US Dollar Index. The developments in the US-China trade war and the geopolitical tensions between Iran and the USA are also a major influence on the currency pair’s performance.

The currency pair’s short-term performance is likely to be affected by the release of Markit US Services and Manufacturing PMIs scheduled for later today.

The EUR/USD currency pair was trading at 1.1711  as at 11:02 GMT having rallied from an initial low of 1.1653. The EUR/JPY currency pair was trading at 130.03 having dropped from a high of 130.34.

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