EUR/USD Retreats from Daily High After Release of US ISM Data

The EUR/USD currency pair retreated from its bullish run during the European session after the release of the US ISM Non-Manufacturing PMI data, which beat expectations. The currency pair rallied during the European session as the results of an election poll released by polling agency Odoxa indicated that Emmanuel Macron was leading the presidential race in France followed by Marine Le Pen.

At the height of its rally, the EUR/USD had gained close to 70 points from its opening price prior to the release of the US ISM data, which triggered a substantial decline.

The currency pair rallied after the Odoxa poll indicated that Emmanuel Macron was leading in the French presidential poll by 27% followed closely by Marine Le Pen at 25.5%, which allayed fears of a Frexit if Le Pen is elected president. The decline occurred after the US ISM Non-Manufacturing PMI data, which was higher than the forecasted 56.5.

The euro’s strength was also connected to the weaker British pound given the disappointing Markit/CIPS UK Services PMI recorded at a 5-month low of 53.3.

The currency pair’s future performance is likely to be affected by Janet Yellen‘s speech scheduled for 18:00 GMT in Chicago. Investors are looking to confirm the possibility of a Fed rate hike at the FOMC meeting later this month.

The EUR/USD was trading at 1.0553 as at 17:03 GMT having opened the day’s session trading at 1.0506. The EUR/GBP was trading at 0.8619 having retraced its gains from a daily high of 0.8640 indicating that the euro gained against its main rivals today.

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