EUR/USD hits fresh highs above 1.0900 after US ISM Manufacturing PMI
|- US Data: March ISM Manufacturing PMI and February Construction Spending below expectations.
- US Dollar Index tumbles as US yields sank.
- EUR/USD looking to test March highs at 1.0925/30.
The EUR/USD rose further following the release of US Economic data and printed a fresh daily high at 1.0916. It then pulled back to 1.0885. The US Dollar is under pressure amid lower yields and risk appetite.
The US Dollar Index is falling 0.50% and is about to test last week's lows near 102.00. The US 10-year dropped to 3.41%, the lowest level in a week. The lower gained momentum after the release of the US ISM Manufacturing report.
Data showed that economic activity in the US manufacturing sector continued to contract with the ISM Manufacturing PMI falling to 46.3 from 47.7 in February, below the market consensus of 47.5. Ahead of the ADP and the NFP, the Employment index fell to 46.9 from 49.1. A different report showed Construction Spending declined by 0.1% in February.
European Central Bank Robert Holzmann said a half-point hike is still on the cards for May. According to him, it the central bank slows down rate hikes to 25 bps it would be hard to go back.
The 1.0930 zone back in the radar
The EUR/USD approached the 1.0925/30 key resistance area. That zone capped the upside during the last two weeks. A break higher would strengthen the outlook for the Euro. A failure could clear the way for a bearish correction. Support levels might be located at 1.0855 and 1.0815.
Technical levels
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