The euro today recovered most of its daily losses against the US dollar following the release of weak US manufacturing data in the early American session. The EUR/USD currency pair had fallen to a multi-year low in the Asian session following the Federal Reserve‘s hawkish rate cut before rallying higher later.
The EUR/USD currency pair today fell to a low of 1.1027, which was last seen in May 2017, before rallying back almost to its opening high of 1.1071 and was near these highs at the time of writing.
The currency pair opened today’s session with a massive bearish candle extending yesterday’s losses after Jerome Powell, the Fed chair failed to indicate any future rate cuts. The Federal Open Market Committee did cut interest rates by 0.25% as expected but did not promise any future quantitative easing measures as many had hoped. The pair rallied briefly following the release of the upbeat Markit/BME Germany Manufacturing PMI final print, which came in at 43.2 versus the expected 43.1 print. The upbeat Markit eurozone manufacturing PMI, which came in at 46.5 beating consensus estimates of 46.4, also boosted the pair briefly before resuming its decline.
The currency pair rallied higher in the American session following the release of the disappointing ISM US manufacturing index, which came in at 51.2 missing consensus estimates set at 52.0. The pair recouped most of its losses as the greenback crumbled.
The currency pair’s future performance is likely to be influenced by tomorrow’s US non-farm payrolls data.
The EUR/USD currency pair was trading at 1.1065 as at 17:22 GMT having rallied from a low of 1.1027. The EUR/JPY currency pair was trading at 119.66 having fallen from a high of 120.71.
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