• EUR/USD recovers to 1.0840 amid the weaker US Dollar. 
  • The US ISM Services PMI eased to 51.4 in March from 52.6 in February, weaker than expected. 
  • Eurozone HICP inflation fell further than expected in March, triggering the possibility that the ECB will cut rates in June.

The EUR/USD pair extends recovery and flirts with the 100-day Exponential Moving Average (EMA) around 1.0840 on Thursday during the early Asian session. The sell-off in the USD Index (DXY) to 104.00 support after the weaker-than-expected US March ISM Services PMI data provide some support to the major pair. Investors await the final HCOB Services PMIs in Germany and the euro area, along with the US February Balance of Trade and weekly Initial Jobless Claims.

Business activity in the US service sector expanded slower in March. According to the Institute for Supply Management (ISM) on Wednesday, the US Services Purchasing Managers Index (PMI) eased to 51.4 in March from 52.6 in February, weaker than the expectation of 52.7. A measure of prices paid by businesses for inputs dropped to a four-year low, coming in at 53.4 versus 58.6 prior. In response to the data, the US Dollar (USD) faced some selling pressure and dropped to 104.25. 

Additionally, data released from Automatic Data Processing (ADP) revealed that private sector employment in the US rose by 184K in March from the 155K increase (revised from 140K) in February, above the market consensus of 148K. 

On the other hand, the Eurozone annual rate of inflation fell further than expected in March, triggering the possibility that the ECB will cut interest rates in June. ECB policymaker Pablo Hernandez de Cos said on Wednesday that he is not explicitly giving forecasts on future monetary policy, but recent inflation data is compatible with our mandate of an inflation objective. He added that the ECB could start cutting interest rates in June after a continued slowdown in inflation in the bloc. Meanwhile, the ECB policymaker Robert Holzmann said the central bank could start cutting interest rates in June as inflation may fall quicker than expected, but should not get too far ahead of the US Fed. 

On Wednesday, the Eurozone annual Harmonized Index of Consumer Prices (HICP) climbed 2.4% in March, easing from a 2.6% increase in February, missing the market estimation for a 2.6% rise in the reported period. However, the impact on the Euro following the Eurozone inflation data has been marginal.

EUR/USD

Overview
Today last price 1.0838
Today Daily Change 0.0069
Today Daily Change % 0.64
Today daily open 1.0769
 
Trends
Daily SMA20 1.0864
Daily SMA50 1.0831
Daily SMA100 1.0876
Daily SMA200 1.0834
 
Levels
Previous Daily High 1.0779
Previous Daily Low 1.0725
Previous Weekly High 1.0864
Previous Weekly Low 1.0768
Previous Monthly High 1.0981
Previous Monthly Low 1.0768
Daily Fibonacci 38.2% 1.0758
Daily Fibonacci 61.8% 1.0745
Daily Pivot Point S1 1.0736
Daily Pivot Point S2 1.0703
Daily Pivot Point S3 1.0682
Daily Pivot Point R1 1.0791
Daily Pivot Point R2 1.0812
Daily Pivot Point R3 1.0845

 

 

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

EUR/USD holds above 1.0650 ahead of US Retail Sales data

EUR/USD holds above 1.0650 ahead of US Retail Sales data

EUR/USD trades modestly higher on the day above 1.0650 in European trading on Monday. A broadly subdued US Dollar and improving risk appetite bode well for the pair, as markets assess geopolitical developments and await US data. 

EUR/USD News

USD/JPY sits at multi-decade high near 154.00 as Japan's intervention risks loom

USD/JPY sits at multi-decade high near 154.00 as Japan's intervention risks loom

USD/JPY is sitting at multi-decade highs shy of 154.00 in the European session on Monday. The Japanese Yen continues to be undermined by the BoJ’s uncertain outlook about future rate hikes. Intervention fears and persistent geopolitical tensions could help limit losses for the safe-haven JPY. 

USD/JPY News

Gold struggles to hold above $2,350

Gold struggles to hold above $2,350

Following a bullish opening to the week, Gold went into a consolidation phase and retreated below $2,350 on Monday. Rising US Treasury bond yields and expectations of Israel avoiding a further escalation of the conflict with Iran weighs on XAU/USD.

Gold News

XRP price recovers from nearly eleven month low of $0.41 as developers propose native lending on XRPLedger

XRP price recovers from nearly eleven month low of $0.41 as developers propose native lending on XRPLedger

Ripple price recovered from weekend low of $0.4188, surged past $0.50 on Monday. XRPLedger developers have proposed a Native Lending Protocol to help Ripple establish a foothold in DeFi, lending and borrowing for users. 

Read more

Week ahead: Data from the US, UK and Canada in focus

Week ahead: Data from the US, UK and Canada in focus

Similar to Fed and ECB pricing, swaps traders have scaled back bets of rate cuts for the Bank of England (BoE’s) Bank Rate to below 50bps for the year.

Read more

Forex MAJORS

Cryptocurrencies

Signatures