EUR/USD – Euro Dips on Mixed PMIs

EUR/USD has lost ground on Tuesday, as the pair trades below the 1.34 line in the European session. Eurozone Services PMIs were a mix on Tuesday, and Eurozone Retail Sales met expectations. In the US, today's highlight is ISM Non-Manufacturing PMI.

Eurozone PMIs are closely tracked by analysts, as they are important gauges of the health of key sectors in the Eurozone economies. Services PMIs painted a mixed picture on Tuesday. The Spanish PMI rose to 56.2 points, beating the estimate of 55.1. The Italian release dipped to 52.8, shy of the estimate of 53.2. Eurozone Final Services PMI improved last month, hitting 54.2, very close to the estimate of 54.4 points. All of the readings were above the 50-point level, which point to expansion in the services sectors. Elsewhere, Eurozone Retail Sales, the primary gauge of consumer spending, rose to 0.4%, matching the forecast. This was a strong improvement from the flat 0.0% reading a month earlier.

US employment numbers were a disappointment last week, although there was good news in other sectors. On Friday, Nonfarm Payrolls took a tumble, slipping to 209 thousand, compared to 288 thousand a month earlier. This was well below the estimate of 231 thousand and marked a four-month low. Earlier in the week, Unemployment Claims rose to 302 thousand, very close to the estimate of 303 thousand. There was positive news from the manufacturing sector, as US ISM Manufacturing PMI rose to 57.1 points, its best showing since November. As well, UoM Consumer Sentiment continues to look strong, coming in at 81.8 points. The index has not been below the 80-point level in 2014, pointing to strong consumer confidence.

EUR/USD 1.3382 H: 1.3425 L: 1.3481