The euro today fell against the US dollar despite upbeat releases from German combined with positive euro area PMI data released by Markit Economics. The EUR/USD currency pair rallied higher after the release of upbeat US PMI data, which was surprising given that the print beat analysts expectations by a wide margin.
The EUR/USD currency pair today rallied from a daily low of 1.1185 to a high of 1.1275 during the US session as investors sold the dollar and bought riskier assets such as the euro.
The pair trended lower earlier today driven by negative investor sentiment despite the release of upbeat German retail sales data before the European open. According to the Federal Statistical Office, Germany’s retail sales rose 13.9% in May, translating into an annualised 3.8%. The pair had a muted response to the upbeat German unemployment data for June with 69,000 jobs lost as compared to the expected 120,000 redundancies. The positive Markit/BME Germany Manufacturing PMI, which came in at 45.2 versus the expected 44.6, barely moved the pair. The same reaction applied to the upbeat Markit eurozone manufacturing PMI, which came in at 47.4 beating consensus estimates set at 46.9.
The currency pair rallied to its daily highs in the American market after the release of the upbeat US ISM manufacturing PMI for June as the dollar sold off. Investors also ignored the positive Markit US Manufacturing PMI in equal measure.
The currency pair’s future performance is likely to be affected by tomorrow’s eurozone PPI data and the US non-farm payrolls.
The EUR/USD currency pair was trading at 1.1265 as at 17:07 GMT having risen from a low of 1.1185. The EUR/JPY currency pair was trading at 121.02 having recovered from a low of 120.26.
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