The euro today see-sawed between gains and losses in reaction to mixed data from across the eurozone but spiked higher in the early American session. The EUR/USD currency pair broke out of the bearish range it had been trapped in and rallied after the release of weak US ISM manufacturing PMI report.
The EUR/USD currency pair today fell to a low of 1.0880 in the early European session, rallied briefly, then fell again before rallying to a new daily high of 1.0942 in the American session.
The currency pair fell at the start of today’s session as investors continued to react to yesterday’s weak German inflation data. The pair hit a floor in the early European session as buyers stepped up despite the release of soft Markit manufacturing PMI prints from Spain, Italy and France. Investors ignored the disappointing PMI prints and were rewarded with the upbeat Markit manufacturing PMI prints from Germany and the eurozone. The pair’s momentum was slightly dimmed by the release of the mixed eurozone consumer price index report for September. According to Eurostat, headline inflation in the euro area fell to 0.9% versus the expected 1.0%, while core inflation held steady at 1.0%.
The currency pair late reversed its gains leading into the American session but headed higher following the release of disappointing US ISM manufacturing PMI data, which came in at 47.8 missing consensus estimates set at 50.1.
The currency pair’s future performance is likely to be affected by US dollar dynamics given tomorrow’s empty European dockets.
The EUR/USD currency pair was trading at 1.0936 as at 19:40 GMT having rallied from a low of 1.0880. The EUR/JPY currency pair was trading at 117.78 having fallen from a high of 118.17.
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