Euro Drops as Draghi Defends His Legacy After ECB Rate Decision

The euro fell against the US dollar in the American session following a spike higher shortly after the announcement of the European Central Bank‘s rate decision. The EUR/USD currency pair rallied to its daily highs in the early European session on mixed IHS Markit flash PMI releases from the euro area but later fell.
The EUR/USD currency pair today rallied to a high of 1.1162 in the early European session, but had fallen to a low of 1.1108 at the time of writing and was heading lower at the time of writing.
The currency pair traded sideways at the start of today’s session before rallying to its daily highs following the release of the Markit France Services PMI for October, which came in at 52.9 versus the expected 51.6. The French manufacturing PMI print was 50.5 beating expectations set at 50.3. The pair fell quickly after the release of the Markit Germany manufacturing PMI, which was recorded at 41.9 versus the expected 42.0 sliding further into contraction territory. The pair had a muted reaction to the release of the ECB monetary policy statement but rallied higher as Mario Draghi delivered his speech. The ECB Governing Council maintained its current monetary policy stance.
The fiber fell in the American session as the US Dollar Index rallied higher despite weak US macro releases. The Markit US Manufacturing PMI beat consensus estimates while US durable goods orders disappointed.
The currency pair’s future performance is likely to be affected by tomorrow’s German Gfk data and IFO releases combined with US dollar dynamics.
The EUR/USD currency pair was trading at 1.1095 as at 15:28 GMT having fallen from a high of 1.1162. The EUR/JPY currency pair was trading at 120.50 having dropped from a high of 121.38.

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