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Euro Trades Sideways Despite Upbeat Euro Area Flash PMI Prints

July 24, 2020 at 14:32 by Simon Mugo

Counting 50-euro bills

The euro today traded sideways against the US dollar as the market sentiment remained subdued despite the release of multiple PMI prints from the euro area by Markit Economics. The EUR/USD currency pair did not react to the US PMI releases as well amid a lack of volatility in the markets as the week comes to an end.

The EUR/USD currency pair today traded between a low of 1.1581 and a high of 1.1621 and was near the top end of the range at the time of writing.

The currency pair today traded sideways as the bulls, and the bears fought for control with no side having an edge. The release of the upbeat Markit flash Germany manufacturing PMI for July, which came in at 50 versus the expected 48 had a muted impact on the pair. The upbeat Markit Germany Services PMI also did not move the pair. The positive Markit Eurozone Services PMI, which came in at 55.1 as compared to analysts estimates set at 51 also had a minimal impact on the single currency. The pair also ignored the upbeat Markit flash France Services PMI, which was recorded at 57.8 versus the consensus estimate of 52.3.

The release of the downbeat Markit flash US Manufacturing PMI, which came in at 51.3 missing consensus estimates set at 51.5 boosted the pair. The weak US PMI prints caused the US Dollar Index to hit a low of 94.45, causing the pair to rally higher.

The currency pair’s future performance is likely to be affected by geopolitical events over the upcoming weekend.

The EUR/USD currency pair was trading at 1.1634 as at 14:31 GMT, having rallied from a low of 1.1581. The EUR/JPY currency pair was trading at 123.12, having dropped from a high of 123.88.

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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