EUR/USD Rises Above 1.1440 as Weak US Dollar and Eurozone PMI Support Euro
During the early European trading session, the EUR/USD currency pair maintained its bullish trend and remained well bid above the 1.1440...
Quick overview
- The EUR/USD currency pair is maintaining a bullish trend above the 1.1440 level, supported by a weaker US dollar and stronger Eurozone services data.
- The US dollar is under pressure following disappointing Nonfarm Payrolls data, which showed only 57,000 jobs added in June, well below expectations.
- Investors are looking ahead to upcoming economic data from Germany and France for insights into the Eurozone economy.
- Stronger Eurozone PMI data has bolstered confidence in the European economy, further supporting the EUR/USD pair.
During the early European trading session, the EUR/USD currency pair maintained its bullish trend and remained well bid above the 1.1440 level. However, the reason for its bullish trend can be associated with the weaker US dollar, which lost its traction in the wake of the disappointing US Nonfarm Payrolls (NFP) report released on Thursday. On the other hand, the bullish bias in the EUR/USD pair was also supported by the previously released stronger Eurozone services data.
Looking forward, investors will keep their eyes on Germany and France upcoming economic data for fresh clues on the Eurozone economy. Germany Factory Orders data will be released on Monday at 06:00 GMT, with markets expecting a 1.2 percent monthly increase after a 3.8 percent decline previously.
Weak US Data Keeps Dollar Under Pressure
On the US front, the broad-based US dollar extended its weaker performance and did not show any sign of slowing down in the European session. As of now, the US Dollar Index (DXY) trades lower near the 100.84 price zone and is set to finish the week with a 0.50% loss. The reason for its decline could be attributed to the previously released disappointing US Nonfarm Payrolls (NFP) report. On the data front, the US economy added just 57,000 jobs in June, well below market expectations of 110,000. Therefore, this weaker data boosted expectations that the Federal Reserve will keep interest rates unchanged. As a result, now see less than a 20 percent chance of a rate hike in July. This adds further pressure on the US dollar.
Looking forward, investors will now focus on the important United States calendar. Monday will come with the final S&P Global Services PMI and ISM Services PMI data. Afterward, on Tuesday, there will be the trade balance will be in the spotlight, and on Wednesday, the FOMC Minutes will be key. Meanwhile, the minutes from the Fed June meeting, the first under Chair Kevin Warsh, will also offer some important clues.
Euro Rises on Strong Economic Data
On the EUR front, the data from the Eurozone has been very supportive for the EUR/USD pair. On Friday, the June final HCOB Services Purchasing Managers Index (PMI) has been revised up to a 49.4 reading from the previously estimated 48.9, pushing the Composite PMI up to 50 from the 49.5 reading shown at the preliminary estimates. German and Spanish services activity has been stronger than previously thought in June, while Italian and French services figures were revised lower,
The stronger Eurozone PMI data improved confidence in the European economy and increased demand for the shared currency. As a result, the EUR/USD pair gained support and remains bid.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
- Read our latest reviews on: Avatrade, Exness, HFM and XM
Related Articles
Sidebar rates
Related Posts
Save