TheÂ euro today headed lower against theÂ US dollar inÂ theÂ early European session following theÂ release ofÂ mixed Eurozone PMI data byÂ IHS Markit. TheÂ euro’s decline drove theÂ EUR/USD currency pair lower asÂ theÂ US dollar recovered from its slump that occurred inÂ theÂ Asian session.
TheÂ EUR/USD currency pair today declined from aÂ high ofÂ 1.1681 toÂ aÂ low ofÂ 1.1629 driven byÂ theÂ US dollar’s rebound.
TheÂ currency pair today headed lower despite theÂ release ofÂ positive Markit Germany Services PMI, which came inÂ atÂ 54.5 beating theÂ consensus estimate ofÂ 53.9. TheÂ Markit Eurozone Services PMI also came inÂ above expectations atÂ 55.2 versus theÂ expected 55.0 print. TheÂ Markit France Services PMI missed expectations asÂ it was recorded atÂ 55.9 asÂ compared toÂ theÂ expected 56.4. TheÂ Markit Italy Services PMI beat expectations byÂ aÂ significant margin byÂ coming inÂ atÂ 54.3 versus theÂ expected 53.3. TheÂ mostly positive PMI releases from across theÂ Eurozone could not reverse theÂ pair’s decline.
TheÂ currency pair’s decline was largely attributed toÂ theÂ greenback’s rebound asÂ tracked byÂ theÂ US Dollar Index, which hit aÂ high ofÂ 94.71 today, despite theÂ closure ofÂ US markets due toÂ Independence Day celebrations. TheÂ fundamental driver behind theÂ pair’s decline seems toÂ be theÂ monetary policy divergence between theÂ ECB andÂ theÂ US Federal Reserve.
TheÂ currency pair’s future performance is likely toÂ be affected byÂ tomorrow’s German factory orders, German construction PMI, US ADP employment report, andÂ FOMC minutes.
TheÂ EUR/USD currency pair was trading atÂ 1.1639 asÂ atÂ 13:49 GMT having dropped from anÂ initial high ofÂ 1.1681. TheÂ EUR/JPY currency pair was trading atÂ 128.63 having declined from aÂ high ofÂ 128.95.
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