EUR/USD spikes to over 1-week tops, eyeing a move beyond 1.10 handle on dismal US ISM PMI
- The pair quickly reversed an early dip and managed to regain traction amid weaker USD.
- The US ISM PMI missed expectations by a big margin and further weighed on the buck.
The EUR/USD pair spiked to over one-week tops, with bulls now looking to extend the momentum further beyond the key-1.10 psychological mark post-US ISM PMI.
After an initial dip to levels just below mid-1.0900s, the pair managed to regain some positive traction and built on this week's goodish recovery move from 28-month lows amid the prevalent selling bias surrounding the US Dollar.
Dismal US data adds to the USD selling bias
The already weaker sentiment surrounding the Greenback deteriorated further following the release of US ISM non-manufacturing PMI, which fell more-than-expected to 52.6 in September as compared to 56.4 previous.
The data comes on the back of this week's dismal manufacturing report and further fueled concerns about slowing economic growth in the world's largest economy, raising prospects for a further interest rate cut by the Fed in October.
The ongoing slide in the US Treasury bond yields to the lowest level since September 9 further reinforced dovish Fed rate expectations, which might keep the USD bulls on the defensive and continue driving the pair higher.
Technical levels to watch
Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
