The EURUSD currency pair was trading sideways at writing as the markets remained undecided on whether to push the currency pair higher or lower. The currency pair had alternated between gains and losses for most of the day.
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The release of mostly weak PMI data from the Europen dockets contributed to the euro’s weakness. The pair fell after Germany’s flash Manufacturing PMI came in at 39.1, slightly ahead of expectations set at 38.9. The country’s flash Services PMI was also recorded at 47.3, missing analysts’ estimates of 51.5.
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The flash French Manufacturing PMI relieved the pair, as the print came in at 46.4, beating analysts' estimates of 45.1. Still, the Flash French Services PMI, recorded at 46.7, missing analysts' consensus estimates of 47.5, drove the pair lower.
The currency pair was headed higher at writing after the US Flash Manufacturing PMI came in at 47.0, missing analysts' expectations of 48.9. At the same time, the flash Services PMI was also below estimates by coming in at 51.0 versus the expected 52.1 figure.
The PMI data from the US and Europe were the primary driving factors behind today’s sideway trading range in the EURUSD currency pair. The US Dollar Index also affected the currency pair’s performance after rallying higher earlier in the day and then losing momentum in the North American session.
The weak US PMI data also casts doubt about the strength of the US economy, which could make the Federal Reserve keep interest rates stable for longer.
George Pavel, General Manager at Capex.com Middle East, said: “The USD was seeing a positive performance today against most major currencies with European currencies recording some weakness and traders monitoring economic data and hints on monetary policy. The US currency has been rising for more than a month and is approaching its previous peak, where it could find some resistance with economic conditions and expectations changing rapidly. The Euro and the British pound have been under pressure today, with PMI figures indicating deteriorating economic conditions in the Euro area and the UK. The data showed stronger-than-expected declines overall in the region, which could affect monetary policy expectations…”
The EURUSD price chart.
The EURUSD currency pair was trading sideways at writing, alternating between gains and losses most of the day.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.