TheÂ euro today rallied slightly higher against theÂ US dollar inÂ theÂ early European session following theÂ release ofÂ mixed Eurozone PMI data byÂ IHS Markit. TheÂ US dollar was stronger against theÂ euro during theÂ Asian session after President Donald Trump‘s comments onÂ US GDP growth boosted theÂ greenback.
TheÂ EUR/USD currency pair today rallied from aÂ low ofÂ 1.1653 toÂ aÂ high ofÂ 1.1710 following theÂ Markit releases.
TheÂ currency pair’s rally could largely be attributed toÂ theÂ positive Eurozone PMI releases such asÂ theÂ Markit/BME Germany Manufacturing PMI, which came inÂ atÂ 57.3 versus theÂ expected 55.5. Other positive PMIs include theÂ Markit Germany Services PMI, which also beat expectations byÂ coming inÂ atÂ 54.4, asÂ compared toÂ theÂ consensus estimate ofÂ 54.3. TheÂ Markit Eurozone Manufacturing PMI also surprised toÂ theÂ upside byÂ coming inÂ atÂ 55.1 versus theÂ market expectation ofÂ 54.6. Other weak releases such asÂ theÂ Markit Eurozone Services PMI andÂ theÂ Markit France Services PMI limited theÂ currency pair’s upside.
TheÂ currency pair’s performance was also largely dependent onÂ theÂ greenback’s erratic performance asÂ tracked byÂ theÂ US Dollar Index. TheÂ developments inÂ theÂ US-China trade war andÂ theÂ geopolitical tensions between Iran andÂ theÂ USA are also aÂ major influence onÂ theÂ currency pair’s performance.
TheÂ currency pair’s short-term performance is likely toÂ be affected byÂ theÂ release ofÂ Markit US Services andÂ Manufacturing PMIs scheduled forÂ later today.
TheÂ EUR/USD currency pair was trading atÂ 1.1711Â asÂ atÂ 11:02 GMT having rallied from anÂ initial low ofÂ 1.1653. TheÂ EUR/JPY currency pair was trading atÂ 130.03 having dropped from aÂ high ofÂ 130.34.
If you have any questions, comments or opinions regarding the Euro,
feel free to post them using the commentary form below.