Euro Trades Sideways at 2-Month Lows on Weak German PMI Data

The euro today traded sideways against the US dollar with a slight bearish bias following the release of disappointing German and eurozone PMI data by Markit Economics. The EUR/USD currency pair today remained under pressure as investors wait for tomorrow’s European Central Bank monetary policy decision, which many expect to be dovish.
The EUR/USD currency pair today traded between a high of 1.1156 and a 2-month low of 1.1127 and was within this range at the time of writing.
The currency pair opened today’s session trading under intense selling pressure driven by dovish investor expectations and weak releases from the euro area. The release of the disappointing French business climate data by Insee and the weak Markit flash France Services PMI added to the selling pressure. However, the disappointing Markit flash Germany Manufacturing PMI, which came in at 43.1 versus the expected 45.2, drove the pair to its 2-month lows. The weak Markit flash eurozone composite PMI also piled on the selling pressure on the single currency. The disappointing Markit services PMI prints and the weak M3 money supply print also contributed to the pair’s losses.
The fiber rose briefly after the release of the Markit flash US Manufacturing PMI, which missed expectations, but its gains were limited by the upbeat Markit US Services PMI. The strong greenback as tracked by the US Dollar Index also contributed to the pair’s weakness.
The currency pair’s future performance is likely to be affected by tomorrow’s ECB rate decision, and the US durable goods orders.
The EUR/USD currency pair was trading at 1.1145 as at 16:52 GMT having risen from a low of 1.1127. The EUR/JPY currency pair was trading at 120.51 having rallied from a low of 120.20.

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