The euro extended its losing streak against the dollar for the second day in a row despite the release of multiple upbeat euro area PMIs by Markit Economics. The EUR/USD currency pair’s decline mimicked the dollar’s rally, which kept rising, ignoring the falling US Treasury yields, as the country considers more stimulus.
The EUR/USD currency pair fell from a high of 1.1851 during the Australian market to a low of 1.1811 in the early Frankfurt market but was off the lows at the time of writing.
The currency pair’s initial decline was driven by the much stronger dollar as tracked by the US Dollar Index. The pair ignored the upbeat Markit Germany Flash Manufacturing Pmi, which came in at 66.6, beating analysts expectations set at 60.8. The positive German services and composite PMIs also had a muted impact on the euro. The release of the upbeat Markit Eurozone Flash Manufacturing PMI, which came in at 62.4 versus consensus estimates of 57.7, barely moved the pair. The same applied to the French services and manufacturing PMIs, which were also better than expected.
The euro was largely unaffected by the German Chancellor Angela Merkel‘s announcement that she was dropping the 5-day Easter holiday lockdown from April 1–5, which could lead to more infections. The release of the downbeat US Durable Goods Orders for February by the Census Bureau had a muted impact on the fibre, which kept trading sideways.
The currency pair’s future performance is likely to be affected by Lagarde’s speech tomorrow and the German GfK consumer confidence print.
The EUR/USD currency pair was trading at 1.1826 at 13:12 GMT, having dropped from a high of –. The EUR/JPY currency pair was trading at 128.61 after recovering from a low of 128.28.
© SimonMugo for Forex News, 2021. |
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Post tags: Angela Merkel, Census Bureau, Coronavirus, Durable Goods Orders, EUR/JPY, EUR/USD, Eurozone, IHS Markit, Manufacturing, PMI, Service Industries, Treasuries, US Dollar Index
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