EUR/USD on Defense as US Dollar Firms Following Strong PMI Data

<iframe src=”//rcm-na.amazon-adsystem.com/e/cm?o=1&p=22&l=ur1&category=homegarden&banner=02NMTC702K4D0VHE1SR2&f=ifr&linkID=17e0b4ac3a719000706e772761d8ae0e&t=forexz-20&tracking_id=forexz-20″ width=”250″ height=”250″ scrolling=”no” border=”0″ marginwidth=”0″ style=”border:none;” frameborder=”0″></iframe>

US DOLLAR OUTLOOK: EUR/USD STRENGTH STALLS FOLLOWING LATEST PMI REPORT

Markets are digesting the latest round of monthly PMI data just released by IHS Markit. EUR/USD price action has been trading on its front foot for most of the session with a broadly stronger Euro piggybacking on a softer US Dollar. Eurozone PMIs topped consensus forecast led by a record expansion in manufacturing output and the first sign of growth in the services sector since August last year.

How to Trade EUR/USD

Recommended by Rich Dvorak

How to Trade EUR/USD

EUR/USD PRICE CHART: 15-MINUTE TIME FRAME (22 APR TO 23 APR 2021)

EURUSD Price Chart Euro to US Dollar Outlook

Also, with EU covid lockdowns easing ahead, outlook for the Euro-area seems encouraging and is likely contributing to the recent influx of EUR/USD strength. US PMI data crossed market wires better-than-expected as well, but it seems as though traders have priced the Greenback for perfection, hence the overall muted response by USD bulls. Not to mention, ten-year Bund to Treasury yield spreads have been edging higher and arguably underpins Euro gains against its US Dollar peer.



of clients are net long.



of clients are net short.

Change in Longs Shorts OI
Daily -8% 15% 6%
Weekly -8% 6% 1%

— Written by Rich Dvorak, Analyst for DailyFX.com

Connect with @RichDvorakFX on Twitter for real-time market insight

Be the first to comment

Leave a Reply

Your email address will not be published.


*


− 4 = 1