EUR/USD remains above 1.0800 ahead of Eurozone PMI

FXStreet
Updated May 23, 2024 06:20
Mitrade

■EUR/USD holds its position ahead of the releases of PMI data from the Eurozone and Germany.

■Eurozone Manufacturing Services PMIs are expected to tick upwards slightly in May.

■FOMC Minutes suggested a hawkish sentiment surrounding the Fed policy stance.


EUR/USD treads water to halt its three-day losing streak, hovering around 1.0820 during the Asian session on Thursday. The Euro's appreciation against the US Dollar (USD) can be attributed to a corrective move for the latter. Investors are likely to await Purchasing Managers Index (PMI) data from both the Eurozone and Germany, with subsequent attention turning to the US PMI later in the North American session on Thursday.


Projections suggest that Eurozone Manufacturing PMI in May is anticipated to rise to 46.2 from 45.7, while the Services PMI is expected to show a slight uptick to 53.5 from 53.3. Meanwhile, in the United States (US), both Manufacturing and Services PMIs are expected to remain unchanged at 50.0 and 51.3, respectively.


The Euro could face challenges ahead as the European Central Bank (ECB) is expected to consider reducing borrowing costs in its June meeting. This anticipation stems from the current inflation rate in the Euro Area, which stands at 2.4%, very close to the ECB's target of 2.0%. President Christine Lagarde recently indicated a high probability of such action in June if data continues to support the confidence that inflation will eventually align with the ECB's target in the medium term.


On Wednesday, the US Dollar (USD) strengthened as the minutes from the latest Federal Open Market Committee (FOMC) policy meeting indicated hawkish sentiment surrounding the Federal Reserve (Fed) policy stance. Fed policymakers expressed concerns about the lack of progress on inflation, which has proven to be more persistent than expected at the start of 2024. As a result, the Fed is hesitant to proceed with interest rate cuts.


EUR/USD


Overview
Today last price 1.0825
Today Daily Change 0.0002
Today Daily Change % 0.02
Today daily open 1.0823
 
Trends
Daily SMA20 1.078
Daily SMA50 1.0778
Daily SMA100 1.0816
Daily SMA200 1.0788
 
Levels
Previous Daily High 1.0864
Previous Daily Low 1.0818
Previous Weekly High 1.0895
Previous Weekly Low 1.0766
Previous Monthly High 1.0885
Previous Monthly Low 1.0601
Daily Fibonacci 38.2% 1.0835
Daily Fibonacci 61.8% 1.0846
Daily Pivot Point S1 1.0806
Daily Pivot Point S2 1.0789
Daily Pivot Point S3 1.076
Daily Pivot Point R1 1.0852
Daily Pivot Point R2 1.0881
Daily Pivot Point R3 1.0898

* The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

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