The euro today fell against the much stronger US dollar as investors reacted to mostly negative IHS Markit preliminary services PMI reports from across the eurozone. The EUR/USD currency pair today attempted to rally higher on positive French and German manufacturing PMIs, but the rally was short-lived due to the weak services PMIs.
The EUR/USD currency pair today rallied to a daily high of 1.1087 before falling to a low of 1.1027 and was headed lower at the time of writing.
The currency pair opened today’s session trading sideways during the Asian session before spiking to its daily highs in the early European session. The release of the German Q3 GDP report by the Federal Statistical Office had a muted impact on the pair despite both the quarterly and annualised prints meeting expectations. The release of the upbeat Markit Germany manufacturing PMI for November, which came in at 43.8 versus the expected 42.9 triggered the spike. The upbeat Markit France Manufacturing PMI also contributed to the brief rally. However, the pair couldn’t sustain its rally as the services PMI prints missed expectations. The Markit eurozone services PMI came in at 51.5 versus the expected 52.5 print. The Markit German and French services PMIs also missed expectations.
The currency pair headed lower after the release of the preliminary Markit US services and manufacturing PMIs, both of which met expectations. The release of the upbeat University of Michigan consumer sentiment index for November also contributed to the decline.
The currency pair’s performance over the upcoming weekend is likely to be influenced by geopolitical events.
The EUR/USD currency pair was trading at 1.1028 as at 17:00 GMT having fallen from a high of 1.1087. The EUR/JPY currency pair was trading at 119.84 having dropped from a high of 120.48.
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