Euro Rallies From Multi-Year Lows as US Data Disappoints

The euro today rallied from multi-year lows in the American session after key US data disappointed and US Treasury yields dropped to multi-year lows. The EUR/USD currency pair had fallen to lows last seen in May 2017 following the release of multiple weak releases from Germany and the eurozone earlier today.
The EUR/USD currency pair today rallied from a low of 1.1106 in the mid-European session to a high of 1.1180 at the time of writing.
The currency pair opened today’s session with a bearish bias driven by investor sentiment before dipping much lower in the European session. The release of German Q1 GDP by the Federal Statistical Office could not stop the pair’s decline despite being positive. Spot kept falling after the release of disappointing Markit Germany Manufacturing PMI followed closely by the Markit eurozone services PMI, which also disappointed. The disappointing German and the eurozone PMI prints led the pair lower. The weak German IFO business climate index added significant pressure on the pair. The release of the minutes of the latest European Central Bank account of monetary policy meeting also drove the pair lower given the dovish measures outlined by the bank.
The release of disappointing Markit US Manufacturing and Services PMI triggered the pair’s rally. The manufacturing print fell to 9-year lows, while the services print fell to 39 month lows causing US Treasury yields to drop to December 217 lows.
The pair’s future performance is likely to be affected by trade headlines and tomorrow’s US durable goods orders.
The EUR/USD currency pair was trading at 1.1182 as at 17:03 GMT having rallied from a low of 1.1106. The EUR/JPY currency pair was trading at 122.49 having fallen from a high of 123.05.

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