|

EURUSD: Euro remains below 1.11 despite PMIs beat

Traders hesitated with buying the shared currency on Thursday and the EURUSD pair stayed below the 1.11 level, near 3-week lows, amid worsening risk appetite.

Earlier in the day, German manufacturing PMI improved slightly and printed 43.6 for August, up from 43.2 in July, but still very deep in the contraction territory. The services sector slowed a bit, from 54.5 to 54.4. Both numbers came above market expectations.

The euro zone's figures were also better than forecast, with the manufacturing sector improving from 46.5 to 47.0, while the services PMI edged higher to 53.4 from 53.2. As previously said, the EURUSD pair failed to move higher after these numbers and remained offered on any small rallies.

Meanwhile, the US manufacturing PMI for August declined into recession territory and printed 49.9, down from 50.4 in July. The services sector also slowed notably, from 53.0 to 50.9. The greenback lost some ground after these weak numbers.

The technical analysis points to choppy trading with some bearish tendencies as the pair is being offered on any rallies. Should the euro decline below 1.1060, we could see a downward movement toward the current cycle lows near 1.1020.

On the upside, if the pair rises above the strong resistance of 1.11100, bullish momentum could strengthen, targeting 1.1130 or possibly 1.1160

Author

Axiory Global Research Team

Axiory Global Research Team

Axiory Global Ltd.

Axiory Global Ltd. is a Forex broker that is trying to change rigid principles in the financial sector by a constant process of innovation. Since its beginning in 2011, the mission of Axiory Global Ltd.

More from Axiory Global Research Team
Share:

Editor's Picks

EUR/USD clings to daily gains, still below 1.1900

EUR/USD manages to reverse two daily pullbacks in a row and advances modestly on Thursday, hovering around the 1.1880 zone amid the inconclusive price action around the US Dollar. Meanwhile, weekly Initial Claims rose more than expected last week, while attention is expected to shift to the upcoming US CPI data on Friday.

GBP/USD picks up pace, hits 1.3640

GBP/USD trades with modest gains around 1.3640 so far on Thursday. Indeed, Cable looks to leave behind the weakness seen in the first half of the week in a context of an equally erratic performance in the Greenback and disappoting UK data releases.

Gold stays offered below $5,100

Gold keeps the choppy trade well in place on Thursday, navigating the area below the $5,100 mark per troy ounce amid the lack of clear direction in the Greenback, declining US Treasury yields across the curve and caution ahead of Friday’s publication of US CPI.

LayerZero Price Forecast: ZRO steadies as markets digest Zero blockchain announcement

LayerZero (ZRO) trades above $2.00 at press time on Thursday, holding steady after a 17% rebound the previous day, which aligned with the public announcement of the Zero blockchain and Cathie Wood joining the advisory board. 

A tale of two labour markets: Headline strength masks underlying weakness

Undoubtedly, yesterday’s delayed US January jobs report delivered a strong headline – one that surpassed most estimates. However, optimism quickly faded amid sobering benchmark revisions.

Sonic Labs’ vertical integration fuels recovery in S token

Sonic, previously Fantom (FTM), is extending its recovery trade at $0.048 at the time of writing, after rebounding by over 12% the previous day. The recovery thesis’ strengths lie in the optimism surrounding Sonic Labs’ Wednesday announcement to shift to a vertically integrated model, aimed at boosting S token utility.