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EUR/USD Falls, Reacting to PMI Releases

April 23, 2020 by

EUR/USD has dropped as of now, though during Thursday’s session it was moving back and forth, reacting to PMI releases from Markit. The currency pair fell after the release of soft data for the eurozone but bounced back after the indicators for the United States came out weak as well. Currently, though, the pair has retreated, trading below the opening level.

Initial jobless claims were at a seasonally adjusted level of 4,427k last week, down from the previous week’s revised level of 5,237k (5,245k before the revision). Analysts had predicted a smaller figure of 4,350k. (Event A on the chart.)

Flash Markit manufacturing PMI declined from 48.5 in March to 36.9 in April — the lowest level in about 11 years. Analysts were expecting an even bigger slump to 35.1. Flash Markit services PMI dropped from 39.8 to 27.0 — the new historic low. In this case, the actual reading was worse than the consensus forecast — 30.5. (Event B on the chart.)

New home sales were at a seasonally adjusted annual rate of 627k in March, missing the median forecast of 643k. The previous month’s figure got a negative revision from 765k to 741k. (Event C on the chart.)

If you have any comments on the recent EUR/USD action, please reply using the form below.

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