EUR/USD fell today, changing its direction for the third day in a row. Some market analysts predicted that the currency pair will be trading in a range in a near future as the most important fundamentals, like geopolitical risks and monetary policy, are already priced in. Meanwhile, both reports about the US service sector released today beat expectations, driving the EUR/USD pair further down, though currently it is attempting to rebound.
Markit services PMI climbed to 56.8 in May from 54.6 in April according to the final estimate. Analysts had expected the same 55.7 reading that was shown in the preliminary estimate. (Event A on the chart.)
ISM services PMI jumped to 58.6% in May from 56.8% in April, exceeding the consensus forecast of 57.9%. (Event B on the chart.)
Yesterday, a report on factory orders was released, showing a drop by 0.8% in April — two times bigger than the forecast decline by 0.4%. The indicator rose 1.7% in the previous month. (Not shown on the chart.)
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