Euro Fails to Profit from Positive PMI Readings

The euro failed to garner support from the very positive macroeconomic reports released today. The currency attempted to rally intraday, but failed to do so, and is now trading near or below the opening level against most of its rivals.

Markit released preliminary reports for manufacturing and service industries in Germany, France, and the eurozone in general. All of the Purchasing Managers’ Indices were higher in September compared to August. What is more, all of them turned out to be better than forecasts.

Adding to the list of the positive factors for the euro, were tensions between the United States and North Korea, which drove investors away from the US dollar.

Despite all the supportive forces, the shared 19-nation currency was unable to hold onto gains. The euro was rallying up until 11:15 GMT but reversed its movement afterwards.

EUR/USD was up from 1.1940 to 1.2004 intraday but pulled back to close at 1.1946. EUR/JPY dropped from 134.28 to 133.79. EUR/CHF settled at 1.1578 after opening at 1.1589.

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