EUR/USD Rallies on Markit PMIs

EUR/USD rallied today, rising for the third consecutive trading session. While the dovishness of the Federal Reserve continued to support the currency pair, PMIs released by Markit today were also helping. Most indicators for the eurozone exceeded expectations, while the US indicators missed forecasts. The better-than-expected US housing data halted the rally but did not make the EUR/USD pair back off.
Both Markit manufacturing PMI and Markit services PMI fell in June from the previous month on a seasonally adjusted basis according to the flash readings, while analysts were not expecting any significant change. Markit manufacturing PMI dropped to 50.1 from 50.5. Markit services PMI declined to 50.7 from 50.9. (Event A on the chart.)
Existing home sales climbed to the seasonally adjusted annual rate of 5.34 million in May from 5.21 million in April. Analysts had predicted a smaller number of 5.29 million. (Event B on the chart.)

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