EUR/USD strengthens as HCOB PMI data are expected to show overall growth in business activity in May.
S&P Global US PMI data may show that overall business activity is expected to expand at a steady pace.
The US House Rules Committee approved President Trump's sweeping tax-cut bill.
EUR/USD is hovering around 1.1340, close to two-week highs during the Asian trading hours. The Euro (EUR) continues its winning streak for the fourth consecutive session ahead of the HCOB Purchasing Managers Index (PMI) for the Eurozone, scheduled to be released later in the day. According to the preliminary estimates, the overall business activity is expected to have grown in May at a faster pace than what was seen in April.
The US Dollar (USD) continues to weaken due to dampened market sentiment in the United States (US). Traders will likely observe S&P Global US Purchasing Managers Index (PMI) data due on Thursday. The overall business activity is expected to expand at a steady pace in May.
Moody’s downgraded the US credit rating from Aaa to Aa1, following similar downgrades by Fitch Ratings in 2023 and Standard & Poor’s in 2011. Moody’s also predicted that US federal debt is expected to climb to around 134% of GDP by 2035, up from 98% in 2023, with the budget deficit expected to widen to nearly 9% of GDP. This deterioration is attributed to rising debt-servicing costs, expanding entitlement programs, and falling tax revenues.
The House Rules Committee approved US President Donald Trump's sweeping tax-cut bill. US House Rules Committee stated that a full House floor vote on the Trump tax cut bill is set to take place in the coming hours. The headlines failed to move the needle around the US Dollar Index (DXY), which tracks the US Dollar against a basket of six major currencies, is trading lower at around 99.50 at the time of writing.
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