Euro Drops From Post-US ADP Highs on Upbeat US Services PMI

The euro today fell from almost 7-week highs against the greenback triggered by weak US employment data following the release of upbeat US services PMI data. The EUR/USD currency pair rallied to the new highs driven by upbeat market sentiment and disappointing US ADP employment change report before falling to new lows.
The EUR/USD currency pair rallied to a high of 1.1306 but fell shortly afterward to hit a new daily low of 1.1229 and was near these lows at the time of writing.
The currency pair rallied higher in the early European session following the release of the upbeat Markit Germany services PMI for May, which came in at 55.4 beating expectations set at 55.0. The upbeat Markit eurozone services PMI released shortly afterward also boosted the pair as it came in at 52.9 versus the expected 52.5. The pair’s rally was further supported by the upbeat eurozone retail sales data for April by Eurostat, which recorded a 0.4% contraction versus the expected 0.5% decline. The annualized retail sales print came in at 1.5% meeting consensus estimates. However, the pair soon fell before its second rally later in the session.
The pair spiked higher following the release of the US ADP employment change report, which came in at 27,000 jobs versus the expected 183,000 jobs. The pair then fell following the release of the upbeat US ISM Non-manufacturing/Services PMI.
The currency pair’s future performance is likely to be affected by tomorrow’s ECB rate decision and US jobless claims data.
The EUR/USD currency pair was trading at 1.1233 as at 17:46 GMT having fallen from a high of  1.1306. The EUR/JPY currency pair was trading at 121.69 having dropped from a high of 122.26.

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