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EUR/USD Makes Subdued Recovery on Positive Eurozone PMIs

January 4, 2018 at 11:16 by Simon Mugo

One euro coin and a chartThe EUR/USD currency pair today made a subdued recovery during the early European session after the release of positive Eurozone PMI data. The final December PMIs released by Markit Economics were the main trigger behind the currency pair’s soft rally.

The EUR/USD currency pair today gained over 50 points from a daily low of 1.2003 hit during the Asian session to a high of 1.2056 reached during the early European session.

The single currency was on a recovery path from the Asian session, but rallied much higher after the release of the Markit Eurozone Composite PMI, which came in at 58.1 versus the expected 58, its highest level since February 2011. The Markit Germany Composite PMI for December was also higher than expected as it was recorded at 58.9 versus the market consensus of 58.7. The Markit Italy Services PMI also came in above expectations at 55.4 as compared to the consensus estimate of 54.7. The Markit France Services PMI was the only disappointment as it was recorded at 59.1, which was lower than the expected 59.4.

The euro seemed to ignore the overnight recovery in the US dollar, which was fueled by the hawkish FOMC minutes, and the positive US ISM Manufacturing PMI. The pair’s rally was largely subdued as it did not reach the highs set on January 2.

The currency pair’s short-term performance will be influenced by the release of US jobless claims data and ADP employment change report.

The EUR/USD currency pair was trading at 1.2047 as at 11:12 GMT having rallied from a daily low of 1.2003. The EUR/JPY currency pair was trading at 135.65 having risen from a low of 135.23.

If you have any questions, comments, or opinions regarding the Euro, feel free to post them using the commentary form below.

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