Euro Falls on Weak Eurozone PMIs, Recovers After US Services PMI Disappoints

The euro today fell to its daily lows early in the European session amid a flurry of disappointing services PMI releases from across the euro area by IHS Markit. The EUR/USD currency pair late recovered and rallied to its daily highs after the US ISM non-manufacturing PMI fell to multi-year lows.
The EUR/USD currency pair today fell to a low of 1.0941 before slowly inching higher and then spiking to its daily high of 1.0999 in the American session and was near these highs at the time of writing.
The currency pair fell at the start of today’s session in a technical pullback from yesterday’s highs. The pair hit its daily lows in the early European session following the release of the Markit Germany Services PMI for September, which came in at 51.4 missing expectation set at 52.5. The Markit eurozone services PMI also contributed to the pair’s decline as it was recorded at 51.6 versus the expected 52.0. The upbeat Markit Italy services PMI could not save the fiber. The pair kept falling despite the release of the upbeat eurozone retail sales data for September by Eurostat, which beat expectations by a surprising 0.2%.
The currency pair inched higher during the mid-European session before spiking to its daily highs following the release of the US ISM non-manufacturing PMI, which fell to 52.6 versus the expected 55.0 print, accelerating fears of a recession in the US.
The currency pair’s future performance is likely to be affected by tomorrow’s US non-farm payrolls data given the empty European dockets.
The EUR/USD currency pair was trading at 1.0983 as at 16:57 GMT having recovered from a low of 1.0941. The EUR/JPY currency pair was trading at 117.32 having fallen from a high of 117.65.

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