EUR/USD drops to 1.0940 after US PMI data
|- US Dollar jumps across the board after PMI survey.
- EUR/USD retreats but holds above daily lows.
The US Dollar rose sharply across the board following the release of the S&P Global PMI, sending EUR/USD under 1.0950. The pair fell from near 1.1000 toward daily lows.
Data boosts US Dollar
“US Flash PMI data signals solid growth in private sector output as the headline figure registered an 11-month high of 53.5 in April (Mar: 52.3). Companies noted that improved demand conditions supported growth”, said S&P Global. The Composite PMI was expected at 52.8. The S&P Global Manufacturing PMI rose from 49.2 in March to 50.4 while the Service PMI from 52.6 to 53.7, both surpassing expectations.
US yields jumped to daily highs after the report. The DXY turned positive, rising toward 102.00. EUR/USD dropped from 1.0993, the highest in a week to 1.0941. The pair remained above daily lows.
Earlier on Friday, the preliminary April PMI for the Euro Zone showed mixed numbers. The Manufacturing Index dropped from 47.3 to 45.5 while the Service rose unexpectedly from 55 to 56.6. While Manufacturing hit the lowest level since May 200, the Service rose to the strongest since April 2022.
Short-term outlook
The EUR/USD weakened during the last hour but so far it stays above the 1.0920/30 area. A break lower would leave the Euro vulnerable to more losses, targeting initially the weekly low at 1.0908. The next support stands at 1.0880.
If the Euro remain above 1.0930, it would likely continue to trade sideways. The upside remains capped below 1.1000. A consolidation above 1.1000 is needed to clear the way to more gains.
Technical levels
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