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EUR/USD Rallies on Positive Eurozone PMIs

June 23, 2020 by

EUR/USD rallied today. Market analysts explained that by mild risk appetite on the Forex market caused by the release of Purchasing Managers’ Indices for the eurozone, all of which came out better than expected. Meanwhile, US PMIs were slightly worse than expectations, making the dollar fall versus the euro. Other US economic reports released today were good, though, and the currency pair had troubles extending the rally.

Markit released preliminary manufacturing and services PMIs for June. Markit manufacturing PMI rose to 49.6 from 39.8 in May but missed the consensus forecast of 50.0. Markit services PMI climbed to 46.7 from 37.5, close to the analysts’ projections of 46.9. Both indicators were at the 4-month high but remained below the neutral 50.0 level, meaning that both manufacturing and services industries continued to contract. (Event A on the chart.)

Richmond Fed manufacturing PMI climbed to 0 in June from -27 in May, beating the consensus forecast of -3 slightly. (Event B on the chart.)

New home sales were at a seasonally adjusted annual rate of 676k in May, up from the revised April rate of 580k (623k before the revision). The actual value was above the median forecast of 637k. (Event B on the chart.)

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