EUR‑USD Seizes the Wind!
Yesterday, the euro kicked off the day upbeat, buoyed by fresh European activity data, while the dollar stuttered a bit after the US saw business growth take a break. The net effect: the euro made up some of the ground it’d lost.
Services PMI Soars
The Services PMI surged to its highest level in 11 months, spurred by strong new orders and a jump in employment. That gives the euro a solid boost.
Inflation Holds Its Ground
Even as price hikes accelerate, the cost inflation in the service sector remains muted compared to previous peaks. Yet, expectations for the coming year dipped to a three‑month low, hinting that confidence in the service sphere is waning.
Where the Pair is Headed
- The euro‑USD gained a bit early in the session, but traders remain wary of upcoming European and U.S. data that could buffet the pair further.
- On Thursday, if German consumer confidence ticks above the market‑expected -25.9 points, the euro could accelerate again.
- Similarly, if U.S. GDP falls below the expected 2.5% (down from 3.4% last reading), the euro might ride that momentum.
- Friday’s core PCE prices could also shift the market dynamics.
Treasury Yield Tumbles
Weaker-than‑anticipated U.S. data may dent U.S. Treasury yields, which have been clustering near this year’s peaks.
