The euro today rallied higher following the release of mostly upbeat PMI reports from across the eurozone by Markit Economics in the early European session. The EUR/USD currency pair later fell in the early American session despite the disappointing US releases driven by subdued investor risk sentiment ahead of tomorrow’s US holiday.
The EUR/USD currency pair today rallied from a low of 1.1267 in the Asian session to a high of 1.1312 in the early American session before dropping back to its daily lows.
The currency pair traded with a bearish bias at the start of today’s session before rallying higher in the European session. The release of the Markit Germany services PMI, which came in at 55.8 beating expectations set at 55.6. The Markit eurozone services PMI also beat consensus estimates by coming in at 53.6 versus the expected 53.4. The Markit Italy services PMI also came in better than expected, which combined with the other two upbeat PMI prints triggered the pair’s rally. The weak Markit France Services PMI could not derail the pair’s rally.
The currency pair spiked higher in the American session following the release of the US ISM non-manufacturing/services PMI, which came in at 55.1 missing expectations set at 56.0. However, the pair quickly fell back despite the release of the disappointing US initial jobless claims report by the Department of Labor among other releases.
The currency pair’s future performance is likely to be affected by the eurozone and German releases given the US independence day celebrations.
The EUR/USD currency pair was trading at 1.1277 as at 18:24 GMT having fallen from a high of 1.1267. The EUR/JPY currency pair was trading at 121.63 having dropped from a high of 121.80.
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Euro Rallies on Upbeat Eruozone PMIs, Falls Despite Weak US Data
