Euro Falls Against the Strong Dollar Despite Upbeat Eurozone PMIs

The euro today fell against the US dollar on the first trading day of 2020 as the greenback started the year on a strong footing and rallied higher. The EUR/USD currency pair today fell from the multi-month highs hit on December 31st despite the release of mostly upbeat euro area PMI reports by Markit Economics.
The EUR/USD currency pair today fell from an opening high of 1.1222 to a low of 1.1170 in the early American session and was near these lows at the time of writing.
The pair fell today reversing a 4-day rally that saw it end the year trading at 4-month highs. The pair’s decline coincided with the greenback’s rally as tracked by the US Dollar Index, which hit a high of 96.84 earlier today. The release of the upbeat Markit/BME Germany Manufacturing PMI, which came in at 43.7 beating consensus estimates set at 43.4 gave the pair a breather. The upbeat Markit Spain Manufacturing PMI also triggered a brief pause in the pair’s decline as did the positive Markit Eurozone Manufacturing PMI. The manufacturing PMI print from France was also positive with Italy’s manufacturing PMI being the only one that missed expectations by a slight margin.
The currency pair recovered at the time of writing after the release of weak Markit US Manufacturing PMI, which came in at 52.4 missing expectations by 0.26. The upbeat US initial jobless claims data could not stop the greenback’s fall.
The currency pair’s future performance is likely to be affected by tomorrow’s multiple European and US releases.
The EUR/USD currency pair was trading at 1.1188 as at 16:14 GMT having fallen from a high of 1.1222. The EUR/JPY currency pair was trading at 121.20 having dropped from a high of 122.01.

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