The euro today rallied slightly against the US dollar recovering most of its initial losses against the greenback in the early to mid-European sessions. The EUR/USD currency pair rallied higher in the early American session despite the release of the positive US ADP employment report.
The EUR/USD currency pair rallied from a low of 1.1671 in the late Asian session to a high of 1.1700 in the early American session.
The release of several PMI prints from across the euro area by IHS Markit seemed to boost the currency pair. The release of the Markit France Manufacturing PMI, which came in at 53.3 versus the market expectation of 53.1 boosted the single currency. The Markit Eurozone Manufacturing PMI, which was recorded at 55.1 in line with consensus estimates, also boosted the currency pair. The Markit Italy Manufacturing PMI, which came in at 51.5 versus the expected 53.0, had a muted impact on the pair. The Markit/BME Germany Manufacturing PMI also came in at 56.9 missing expectations by 0.4 and had a negative impact on the currency pair.
The currency pair rallied higher following the release of the upbeat ADP employment report. The ADP report indicated that the American private sector added 219,000 new jobs as opposed to the consensus estimate of 186,000 new jobs.
The currency pair’s short-term performance is likely to be affected by the release of the US ISM manufacturing and employment reports as well as the FOMC interest rate decision, both scheduled for later today.
The EUR/USD currency pair was trading at 1.1690 as at 13:00 GMT having dropped from a high of 1.1700 earlier today. The EUR/JPY currency pair was trading at 130.84 having risen from a low of 130.59.
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