The EURUSD currency pair was trading sideways at writing, as the markets remained undecided regarding which currency between the euro and the US dollar was more robust. The sideways trading came after IHS Markit released multiple services PMIs from the eurozone.
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The currency pair’s performance was unaffected by the mixed services PMIs from the euro area. The French final services PMI met analysts' expectations by coming in at 48.0, while the German final services PMI was also aligned with analysts' consensus estimates of 54.1.
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However, the Eurozone final services PMI was much lower than expected, coming in at 52.0 versus consensus estimates of 52.4. Other fundamental releases from the European docket included the Frnehc industrial production data, which was recorded at 1.2% beating analysts' estimates of a 0.3% decline.
The Eurozone PPI data was another fundamental trigger for the currency pair, which was recorded at -1.9% beating analysts' expectations of -1.7%. All these mixed releases left the euro exposed and trading uncertainly. However, the pair had started heading higher at writing.
Comments from ECB policymaker, Ignazio Visco, saying that rate hikes were not the only way to combat inflation, also put a damper on the single currency, which expectations of more rate hikes from the ECB have boosted.
Visco’s comments further hinted that the ECB could aim to control inflation by keeping rates at high levels for an extended period. He also insisted that interest rate decisions were made on a meeting-by-meeting basis without an overarching agenda.
Earlier today, the ECB released its survey of consumers regarding their inflation expectations. The May monthly survey revealed that consumers expect inflation to fall to 3.9% over the next year from 4.1% in April. However, inflation expectations for the next three years remained at 2.5%, unchanged from the previous month.
The EURUSD currency pair was inching higher at writing as investors await the opening of the US session and the release of the FOMC meeting minutes later today.
*This is not investment advice.
The EURUSD price chart.
The EURUSD currency pair traded up 2.2 pips (0.02%) at writing as it traded sideways for the day.
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