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Euro Crashes From Daily Highs on Upbeat US ISM Services PMI

September 5, 2019 at 15:24 by Simon Mugo

Various euro billsThe euro today crashed from its daily highs in the American session following the release of the upbeat US ISM non-manufacturing PMI among other positive US releases. The EUR/USD currency pair had rallied to its daily highs in the early European session driven by the news that US-China trade talks are set to resume next month.

The EUR/USD currency pair today rallied from a low of 1.1018 in the late Asian session to a high of 1.1084 in the early American session and was on track to retrace all its gains.

The currency pair was on an uptrend from the early European session driven by a weak greenback as tracked by the US Dollar Index, which hit a low of 98.09. The pair dipped to its daily lows following the release of the weak German factory orders by the Federal Statistical Office before recovering and rallying higher. The factory orders contracted by 2.7% in July versus the expected 1.5% decline, while the annualised print came in at -5.6% as compared to the expected -1.1% print. Demand for the single currency was driven by the improved investor risk sentiment due to the positive US-China trade headlines.

The pair fell slightly following the release of the positive US ADP employment change report, which beat expectations. However, the pair crashed after the release of the upbeat  US ISM non-manufacturing/services PMI, which came in at 56.4 beating consensus estimate set at 54.0.

The pair’s future performance is likely to be affected by tomorrow’s eurozone GDP data and the US non-farm payrolls report.

The EUR/USD currency pair was trading at 1.1049 as at 15:23 GMT having crashed from a high of 1.1084. The EUR/JPY currency pair was trading at 118.19 having dropped from a high of 118.61.

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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