EUR/USD clings to mild losses below 1.0900 ahead of the Eurozone PMI data
|- EUR/USD loses ground near 1.0888, gaining 0.01% on Thursday.
- ECB policymakers said the central bank is data-dependent, and economic data would decide if more tightening is appropriate.
- The Eurozone preliminary HCOB PMI data for November will be in the spotlight.
The EUR/USD pair sticks to mild losses during the early Asian session on Thursday. Investors will closely watch the Eurozone PMI data due later on Thursday. The Eurozone Manufacturing PMI is expected to rise to 43.4, the Services PMI is estimated to grow to 48.1 and the Composite PM is expected to rise to 46.8. Markets remain quiet ahead of Thursday's Thanksgiving Day holiday in the United States. The major pair currently trades around 1.0888, up 0.01% on the day.
On Wednesday, Bundesbank President Joachim Nagel said that interest rates in the Eurozone are close to their peak. He emphasized that economic data would decide if more tightening is appropriate. Meanwhile, ECB Vice President Luis de Guindos said it's premature to discuss rate cuts while adding that the ECB is data-dependent and policy communication is very clear.
On the USD's front, the US Jobless Claims for the week ending November 17 unexpectedly fell to 209K, the biggest fall since June, while Continuing Claims declined to 1.84M from the previous reading of 1.862M. Additionally, UoM 1-year inflation expectations rose to 4.5% from the preliminary 4.4%. The 5–year inflation expectations were steady at 3.2%. Finally, the University of Michigan Consumer Sentiment Index rose to 61.3 in November from an initial reading of 60.4, its fourth consecutive monthly fall. In response to the data, the US Dollar (USD) attracted some buyers and acts as a headwind for the EUR/USD pair.
Market players will closely monitor the Eurozone preliminary HCOB PMI data for November due on Thursday, and the European Central Bank (ECB) will release the minutes of its latest meeting. On the US docket, the US market is closed on Thursday on the Thanksgiving Day holiday. The attention will shift to the US S&P Global PMI data on Friday. These data could give a clear direction to the EUR/USD pair.
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